Vehicle manulfacturer Stellantis N.V. and Element 25 Limited, a mining company, have signed a five-year agreement for Element 25 to supply high-purity manganese sulphate monohydrate to Stellantis for use in electric vehicle (EV) battery packs. A total shipment of 45 kilotons is set for 2026, with the possibility to extend the supply term and volumes.

Element 25 will source the material from its Butcherbird project in Western Australia and plans to construct a processing facility in the U.S. Additionally, Stellantis will make an equity investment in Element 25.

“Our commitment to a carbon net zero future includes creation of a smart supply chain to ensure we meet our customers’ desire for EVs,” said Carlos Tavares, Stellantis CEO, in a press release. “Electric vehicles that deliver breakthrough customer experience in propulsion, connectivity and convenience are central to our Dare Forward 2030 plan that delivers safe, clean and affordable mobility.”

Stellantis has put into place an electrification strategy, which includes securing substantial supplies of raw materials for battery electric vehicle (BEV) production. Manganese is used as a stabilizing ingredient in the cathodes of the nickel-manganese-cobalt lithium-ion batteries, which can be used in EVs.

As part of its Dare Forward 2030 strategic plan, Stellantis announced plans of reaching 50% passenger car and light-duty truck BEV sales mix in the United States by 2030.

Performance of the parties under the binding term sheet is conditioned on satisfactory completion of technical due diligence and a feasibility study, according to Stellantis.