GM Plans to Build More Than One Million Electric Vehicles Like the 2024 Silverado EV a Year

GM is investing $85 million into a company called Element 25 Limited (E25) to guarantee the supply of battery grade high-purity manganese sulphate for GM's EV battery requirements. In return, Element 25 will supply GM with enough manganese sulfate required to build more than 1 million EVs every year. The manganese is a key component in lithium-ion batteries required to power EVs like the 2024 Chevrolet Silverado EV. GM anticipates building more than one million electric trucks and large SUVs, like the Chevrolet Tahoe and Cadillac Escalade once it ramps up capacity.

Investment to Finance Construction of Manganese Plant

Element 25 plans to build its first manganese sulfate facility in the U.S. which will process manganese mined in Australia. The plant is slated for Louisiana. Under the agreement, GM will provide Element 25 with a $85 million loan to partially fund the construction in the state of Louisiana for production of battery-grade manganese sulfate.

"GM is scaling EV production in North America well past 1 million units annually and our direct investments in battery raw materials, processing and components for EVs are providing certainty of supply, favorable commercial terms and thousands of new jobs, especially in the U.S., Canada and free trade agreement countries like Australia," said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain. "The facility E25 will build in Louisiana is significant because it's expected be the first plant in the United States to produce battery-grade manganese sulfate, a key component of cathode active material which helps improve EV battery cell cost."

Element 25 Managing Director Justin Brown said: "E25 is working 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 expansion in the United States. 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."

GM’s EV Production Plans

Cadillac recently announced that a battery electric version of the Cadillac Escalade, called the Escalade IQ, will be unveiled this summer. So far, the automaker has not released any range estimates for the popular large, luxury SUV. The 2024 Chevrolet Silverado EV is just about to go into mass production with a range of 450 miles. The electric GMC Sierra is expected to deliver similar range. Once the trucks hit the market, EV versions of the popular Chevrolet Tahoe, Suburban and GMC Yukon are expected to closely follow the Cadillac Escalade IQ. GM has invested more than two billion dollars in the last few weeks into the plants that build the gas-powered versions of all those vehicles. GM said its ICE vehicles will be around for “years to come.”

GM Investing Billions to Guarantee Battery Availability

Element 25 expects to invest approximately $290 million to build a 230,000-square-foot facility. Site preparation is planned to begin in the third quarter of 2023 and the plant is scheduled to open in 2025. The facility is projected to create around 200 permanent jobs when it is fully operational.

This is just GM’s latest investment in the materials needed to construct lithium-ion batteries. In addition to manganese sulfate, GM has announced direct investments in lithium, nickel and other commodities, as well as cathode active material (CAM) and CAM precursor. GM and its joint venture partners are installing 160GWh of battery cell manufacturing capacity in the U.S., and its suppliers are promising to produce EV components in North America. To date, these initiatives are creating thousands of jobs in states and provinces including California, Louisiana, Nevada, Texas, Ohio, Michigan, Tennessee, Ontario and Quebec.

Element 25 operates the Butcherbird Manganese Project in Western Australia. It ships high quality manganese oxide concentrate to partners in traditional steel related industries. Element 25 has developed an innovative, proprietary, low-cost method to convert Butcherbird manganese concentrate into battery grade high purity manganese sulphate monohydrate to supply the global EV industry. Manganese sulphate is a precursor for battery cathode active material and critical in Australia, Europe and the USA.

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Mary Conway is a professional automotive journalist and has decades of experience specializing in automotive news analysis. She covered the Detroit Three for more than twenty years for the ABC affiliate, in Detroit. Her affection for the Motor City comes naturally. Her father ran a gas station while Mary was growing up, in Wisconsin.

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