Increasing North American EV capacity with local manganese sulfate production
As we shift towards cleaner energy, key players in the automotive industry are securing their supply chains for electric vehicle (EV) production. General Motors (GM) and Element 25 have announced a strategic move that marks a significant step in this direction.
“The facility E25 will build in Louisiana is significant because it’s expected be the first plant in the United States to produce battery-grade manganese sulfate, a key component of cathode active material which helps improve EV battery cell cost,”
Doug Parks, GM executive vice president.
Reinforcing domestic EV capacity
The definitive agreement between GM and Element 25 allows for the supply of high-purity manganese sulfate, a critical component for GM’s EV battery requirements. This solidifies GM’s plan to scale its EV capacity in North America beyond one million units annually.
Investing in manganese sulfate production
GM has committed to invest approximately US$85 million as a loan to Element 25. This investment will aid the construction of the first U.S. manganese sulfate facility, processing manganese mined in Australia, further bolstering the domestic supply chain.
A joint effort for sustainable EV production
This collaboration between GM and Element 25 underlines their commitment to creating a resilient and sustainable North American supply chain for EV production. The efforts extend beyond simply accelerating expansion in the United States to introduce millions of customers to the performance and environmental benefits of EVs.
Creating new jobs with EV production
The new facility, planned to open in 2025, is projected to create approximately 200 permanent jobs, once it is fully operational. This addition to the EV production chain will not only enhance the sector but will also contribute to economic growth.
Specifications and data
Element 25 is expected to invest approximately US$290 million to build a 230,000-square-foot facility. GM’s investment includes a US$85 million loan for the project. Once operational, the facility is expected to supply up to 32,500 metric tons of manganese sulfate annually.
Local supply chain, jobs, and a more sustainable future
GM and Element 25’s collaboration marks a significant shift towards a more sustainable EV production ecosystem. This development promises to provide a robust, local supply chain, generate jobs, and pave the way for a greener future. Indeed, by taking such substantial strides today, these companies are setting the stage for the long-term implications of sustainable development and cleaner energy production.
