General Motors Corporation (NYSE:GM) has reached a deal with Element 25 to deliver up to 32,500 metric tons of manganese sulfate per year. This will help General Motors achieve its target of producing over one million electric vehicles (EVs) in North America.
As part of the agreement, GM would lend Element 25 $85 million to help fund the development of a new factory in Louisiana. This facility, which is scheduled to open in 2025, will be the first of its sort in the United States. It will use manganese concentrate from Element 25’s mining operations in Australia to make battery-grade manganese sulfate, which is a critical component in lithium-ion battery cathodes.
The partnership between General Motors and Element 25 indicates the company’s commitment to increasing EV production in North America and investing in battery raw materials, processing, and components. This investment not only ensures a consistent supply but also delivers several benefits, including favorable commercial conditions and the development of thousands of new employment in the United States, Canada, and free trade agreement countries such as Australia.
Element 25 is to invest around $290 million in the construction of a 230,000-square-foot facility, with site preparation beginning in the third quarter of 2023 and the plant expected to be operational by 2025.
GM continues to expand its domestic supply base for EV production by investing directly in essential commodities such as lithium and nickel, as well as cathode active material (CAM) and CAM precursor.
Furthermore, GM and its joint venture partners are aggressively establishing 160GWh of battery cell manufacturing capacity in the US, while suppliers are shifting production of permanent magnets and other EV components to North America. Thousands of employment have already been created as a result of these programs in states and provinces such as California, Louisiana, Nevada, Texas, Ohio, Michigan, Tennessee, Ontario, and Quebec.
The traditional American carmaker has gained 6% in the last year, while the sector has lost 2.3%.
Featured Image: Megapixl © Lindaparton
Author Stephanie Bédard-Châteauneuf 
