Stellantis has signed an extra-pure manganese sulphate monohydrate sourcing agreement with Australian mining company Element 25 Limited for the manufacture of electric batteries for its vehicles.

The agreement, which has an initial duration of five years, contemplates the start of deliveries in 2026 and a total volume of 45 kilotons, the two companies explained on Monday in a joint statement.

It also foresees the possibility of extending the duration and increasing the quantities of ore, which will be obtained from the so-called Butchebird project in Western Australia of Element 25, which has scheduled the construction of a treatment plant in the United States.

The implementation of the commitment is conditional on the success of a prior technical audit and a study demonstrating feasibility.

The statement does not give any figure for the economic amount of this commitment, although it is noted that Stellantis will have a stake in the capital of Element 25, which is also not quantified.

For the automaker, it is about ensuring “substantial supply of raw materials necessary for the production of electric vehicles” since manganese is “an essential element to stabilize the cathodes of electric vehicle batteries.”

The group intends to invest 30,000 million euros for its electrification and digital transformation.