© Reuters. The logo of Stellantis is seen on a company’s building in Velizy-Villacoublay near Paris, France, February 1, 2022. REUTERS/Gonzalo Fuentes/File Photo

MILAN (Reuters) – Carmaker Stellantis has signed a deal with Australian miner Element 25 for the supply of manganese sulphite for batteries for its electric vehicles (EVs), the two companies said on Monday.

The agreement marks another step in efforts by Stellantis to secure long-term supplies of raw materials essential for electric vehicles as carmakers prepare for a surge in global demand for EVs in the transition towards cleaner motoring.

Stellantis, the world’s third-largest carmaker by sales, has previously signed deals with GME Resources for supply of nickel and cobalt sulphate and with Vulcan Energy Resources and United States-based Controlled Thermal Resources (CTR) for lithium hydroxide.

Based on the five-year binding agreement announced on Monday, Element 25 will supply Stellantis with high-purity manganese sulphate monohydrate to be used in battery packs.

Shipments, for a total of 45 kilotons, are expected to begin in 2026, with options to extend term and volumes.

No financial details for the deal were provided.

Element 25 will source the material from its Butcherbird project in Western Australia and plans to construct a processing facility in the United States. Stellantis, meanwhile, will make an equity investment in Element 25, the two companies added in a statement.

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

Stellantis, formed through the merger of Fiat Chrysler and Peugeot (OTC:) maker PSA, wants 100% of its European passenger car sales and 50% of its U.S. passenger car and light-duty truck sales to be battery electric vehicles by 2030.

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