Stellantis Moves to Manage Battery Material Supply

In a bid to secure as many sources of battery ingredients as it can, Stellantis has signed a contract with Australian provider Element 25 to supply battery-grade, high-purity manganese sulphate monohydrate (MSM) for use in its battery packs.

The five-year agreement calls for shipments to begin in 2026, with a total volume of 45 kilotons, and options 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. Stellantis also will make an equity investment in Element 25.

The agreement hopes to reinforce Stellantis’ electrification strategy, which includes securing substantial supplies of raw materials for battery-electric-vehicle production. MSM is a key stabilizing element in the cathode of EV batteries.

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

Carlos Tavares, Stellantis CEO, says: “Our commitment to a carbon netzero future includes creation of a smart supply chain to ensure we meet our customers’ desire for EVs. 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.”