Carmaker Stellantis seals batteries material deal with Element 25

Element 25

09/01/2023 08:50

MILAN, Jan 9 (Reuters) - Carmaker Stellantis  STLA.MI 
has signed a deal with Australian miner Element 25  E25.AX  for
the supply of manganese sulphite for batteries for its electric
vehicles (EVs), the two companies said on Monday.
    The agreement marks another step in efforts by Stellantis to
secure long-term supplies of raw materials essential for
electric vehicles as carmakers prepare for a surge in global
demand for EVs in the transition towards cleaner motoring.
    Stellantis, the world's third-largest carmaker by sales, has
previously signed deals with GME Resources  GME.AX  for supply
of nickel and cobalt sulphate and with Vulcan Energy Resources
 VUL.AX  and United States-based Controlled Thermal Resources
(CTR) for lithium hydroxide.
    Based on the five-year binding agreement announced on
Monday, Element 25 will supply Stellantis with high-purity
manganese sulphate monohydrate to be used in battery packs. 
    Shipments, for a total of 45 kilotons, are expected to begin
in 2026, with options to extend term and volumes.
    No financial details for the deal were provided.
    Element 25 will source the material from its Butcherbird
project in Western Australia and plans to construct a processing
facility in the United States. Stellantis, meanwhile, will make
an equity investment in Element 25, the two companies added in a
statement.
    "Our commitment to a carbon net-zero future includes
creation of a smart supply chain to ensure we meet our
customers' desire for EVs," Stellantis CEO Carlos Tavares said.
    Stellantis, formed through the merger of Fiat Chrysler and
Peugeot maker PSA, wants 100% of its European passenger car
sales and 50% of its U.S. passenger car and light-duty truck
sales to be battery electric vehicles by 2030.
 (Reporting by Giulio Piovaccari
Editing by David Goodman)
 ((giulio.piovaccari@thomsonreuters.com))