GM, Element 25: U.S. EV Supply Chain Expansion
General Motors Company
General Motors and Element 25 Limited have entered into a significant agreement aimed at supporting the production of over 1 million GM electric vehicles (EVs) in North America annually.
Under this agreement, Element 25 will supply up to 32,500 metric tonnes of manganese sulfate each year. To facilitate this, GM will provide Element 25 with a loan of US$85 million to contribute to the construction of a state-of-the-art facility in Louisiana.
This facility, scheduled to commence operations in 2025, will be the first of its kind in the United States, processing manganese concentrate sourced from Element 25's mining operations in Australia.
GM's executive vice president, Doug Parks, expressed the importance of this collaboration, emphasising GM's commitment to scaling up EV production and ensuring a secure supply chain for battery raw materials.
The new facility in Louisiana will play a crucial role in producing battery-grade manganese sulfate, a key component in cathode active material for EV batteries, thereby enhancing cost efficiency. This partnership not only boosts GM's EV production capabilities but also generates numerous job opportunities in countries such as the United States, Canada, and Australia.
Justin Brown, Managing Director of Element 25, highlighted their objective of becoming a leading, responsible supplier of battery materials to the global EV industry. The support from GM accelerates their expansion plans in the United States and enables the creation of a robust and sustainable North American supply chain, contributing to the widespread adoption of EVs and their associated performance and environmental benefits.
Element 25 intends to invest approximately US$290 million to establish the 230,000-square-foot facility, with preparations set to begin in Q3 2023 and the plant slated for completion in 2025. The facility is projected to generate around 200 permanent jobs once it is fully operational.
GM's commitment to bolstering the domestic supply base for EV production is evident through direct investments in various battery raw materials, including lithium, nickel, and cathode active material.
Additionally, GM and its joint venture partners are actively expanding battery cell manufacturing capacity in the U.S. while promoting the onshoring of production for EV components. These initiatives are already creating significant employment opportunities in several states and provinces, such as California, Louisiana, Nevada, Texas, Ohio, Michigan, Tennessee, Ontario, and Quebec.
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