GM And Element 25 To Boost EV Battery Supply In The U.S.

(CTN News) – GM announced on Monday that manganese sulfate production will be expanded in the US, which is a crucial component of electric vehicle batteries, thanks to a deal with Element 25, an Australian-based supplier.

As part of the supply agreement, Element 25 will supply GM with up to 32,500 metric tons of manganese sulfate each year, helping the automaker to meet its goal of producing over one million electric vehicles in North America by the end of 2025.

There is also an $85 million GM loan in the deal that will help Element 25 finance the construction of a new battery-grade manganese sulfate plant in Lousiana, which will be the first of its kind in the world.

With the opening of the facility in 2025, Element will be able to produce manganese sulfate by processing manganese concentrate that comes from its Australian mining operations.

GM’s executive vice president of global product development, Doug Parks, says the Louisiana plant is of utmost significance, as it is the first of its kind in the US to manufacture battery-grade manganese sulfate products. As Parks pointed out:

The company expects to begin site preparations for the 230,000-square-foot facility in the third quarter of 2023, and once the facility is up and running in 2025, it will create approximately 200 permanent jobs.

GM expands its battery supply chain for electric vehicles in North America

GM announced in recent weeks that it would increase its investment in its new cathode factory in Ontario, Canada, by over $1 billion.

GM states that the new funding will enable it to increase the production of cathode active materials (CAMs) in North America as well as their precursor materials (pCAMs).

The CAM material, which consists of lithium and a secondary metal (or metals), accounts for approximately 40% of the total cost of an EV battery. Nickel-cobalt-manganese (NCM) and lithium-iron-phosphate (LFP) are the two most popular materials today.

Following a strategic investment last October in Queensland Pacific Metals, another Australian-based supplier, GM has also secured nickel and cobalt supplies.

This month, General Motors and its joint venture partners announced plans to build a fourth EV battery plant in the United States, which will have a total capacity of 160 GWh.

The company forecasts that it will be on track to build another 150,000 electric vehicles in North America by the end of the year after selling over 20,000 EVs in just three months in Q1. As of 2025, GM intends to produce one million electric vehicles annually in North America by mid-2024.

As a result of the launch of the Silverado EV, Blazer EV, and Equinox EV by the end of 2023, the automaker expects to have a breakout year.

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