Australia-based Element 25 (E25) has signed an agreement to supply battery-grade high-purity manganese sulphate (HPMSM) to automaker General Motors (GM).

The deal is to help GM secure battery minerals supply to support more than one million electric vehicles (EVs) in North America.

According to the agreement, E25 will supply up to 32,500 tonnes of manganese sulphate annually to GM for seven years, starting from 2025.

In exchange, GM will provide an $85m (A$126.9m) loan to partially fund the construction of E25’s manganese sulphate plant. The product is a key component in lithium-ion battery cathodes.

GM global product development, purchasing and supply chain executive vice-president Doug Parks said: “GM is scaling EV production in North America well past one million units annually and our direct investments in battery raw materials, processing and components for EVs are providing certainty of supply, favourable commercial terms and thousands of new jobs, especially in the US, Canada and with free trade agreement countries such as Australia.”

E25 is constructing a $290m battery-grade manganese sulphate plant in Louisiana, US.

The facility will be equipped to produce manganese sulphate by processing manganese concentrate sourced from E25’s Butcherbird mine in Western Australia.

E25 managing director Justin Brown said: “E25 aims to be a leading source of high-quality, vertically integrated, traceable and ESG-compliant battery material to the global electric vehicle industry and GM’s support does more than accelerate our strategy for HPMSM production in the US.

“Together, we are creating a resilient and sustainable North American supply chain that will help introduce millions of customers to the performance and environmental benefits of EVs.”

E25’s Butcherbird Project comprises large tonnages of near-surface manganese oxide ore in seven deposits.