The deal paves the way for Element 25 to build a new facility in the US state of Louisiana to process battery-grade minerals to supply GM’s auto plant.
Detroit automaker General Motors will loan $US85 million to ASX-listed Element 25 as the world’s biggest car makers race to forge ties with Australian producers of battery materials.
The trend of car makers taking equity positions or financing battery materials producers and explorersas demonstrated by Toyota with Allkem, Ford with Liontown, and Great Wall with Pilbara Minerals. Element 25 expects to invest approximately $US290 million to build the 230,000-square-foot facility. Site preparation is planned to begin in the third quarter of this calendar year and the plant is scheduled to open in 2025. The shares rose 7.5 per cent to 64¢.Doug Parks, GM’s executive vice president of global product development, purchasing and supply chain, said the automaker is seeking to access raw materials from free trade countries, which are strategically aligned to the US.
The $US369 billion US Inflation Reduction Act, Joe Biden’s flagship energy bill, has become the centre of the global green metals boom. Last year, GM invested up to $US69 million in Queensland Pacific Metals in a move aimed atMr Parks added the proposed facility is significant because it could push down battery prices.
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