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General Motors (GM) Partners Element 25 to Scale EV Supply
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General Motors Co. (GM - Free Report) has entered into an agreement with Element 25 whereby the latter will supply up to 32,500 metric tons of manganese sulfate annually. This will support General Motors’ goal of producing more than 1 million electric vehicles (EVs) in North America.
As part of the deal, GM will provide Element 25 with an $85 million loan to partly fund the construction of a new facility in Louisiana. This facility, set to begin production in 2025, will be the first of its kind in the United States. It will process manganese concentrate from Element 25's mining operations in Australia to produce battery-grade manganese sulfate, a crucial component in lithium-ion battery cathodes.
General Motors’ agreement with Element 25 demonstrates its commitment to scaling up EV production in North America and investing in battery raw materials, processing and components. This investment not only ensures a reliable supply but also brings numerous benefits, including favorable commercial terms and the creation of thousands of new jobs in the United States, Canada, and countries covered by free trade agreements, such as Australia.
Element 25 plans to invest around $290 million to construct a 230,000-square-foot facility, with site preparation scheduled to commence in the third quarter of 2023 and the plant expected to be operational by 2025.
GM continues to strengthen its domestic supply base for EV production, not only by securing a steady supply of manganese sulfate but also by directly investing in other key commodities like lithium and nickel, as well as cathode active material (CAM) and CAM precursor.
Additionally, GM and its joint venture partners are actively installing 160GWh of battery cell manufacturing capacity in the United States, while suppliers are relocating production of permanent magnets and other EV components to North America. These initiatives have already resulted in the creation of thousands of jobs in various states and provinces, including California, Louisiana, Nevada, Texas, Ohio, Michigan, Tennessee, Ontario and Quebec.
General Motors currently sports a Zacks Rank #1 (Strong Buy). The legacy U.S. automaker has gained 6% in the past year against the industry’s fall of 2.3%.
The Zacks Consensus Estimate for Allison Transmission Holdings’ current-year earnings is pegged at $6.61 per share, which has been revised upward by 9% in the past 60 days. The company’s shares have gained around 40% over the past year. ALSN delivered a trailing four-quarter earnings surprise of 12.8%, on average.
The Zacks Consensus Estimate for Volvo’s current-year earnings has been revised 28% upward in the past 60 days. The consensus estimate for current-year earnings of VLVLY is currently pegged at $2.18, implying year-over-year growth of 36.25%. Volvo’s shares have rallied roughly 22.8% in the past year.
The Zacks Consensus Estimate for Subaru’s current-year earnings has been revised 17% upward in the past 30 days. The consensus estimate for its current year’s earnings has been pegged at $1.29 per share, indicating year-over-year growth of 33%. The company’s shares have gained 1.9% in the past year.
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General Motors (GM) Partners Element 25 to Scale EV Supply
General Motors Co. (GM - Free Report) has entered into an agreement with Element 25 whereby the latter will supply up to 32,500 metric tons of manganese sulfate annually. This will support General Motors’ goal of producing more than 1 million electric vehicles (EVs) in North America.
As part of the deal, GM will provide Element 25 with an $85 million loan to partly fund the construction of a new facility in Louisiana. This facility, set to begin production in 2025, will be the first of its kind in the United States. It will process manganese concentrate from Element 25's mining operations in Australia to produce battery-grade manganese sulfate, a crucial component in lithium-ion battery cathodes.
General Motors’ agreement with Element 25 demonstrates its commitment to scaling up EV production in North America and investing in battery raw materials, processing and components. This investment not only ensures a reliable supply but also brings numerous benefits, including favorable commercial terms and the creation of thousands of new jobs in the United States, Canada, and countries covered by free trade agreements, such as Australia.
Element 25 plans to invest around $290 million to construct a 230,000-square-foot facility, with site preparation scheduled to commence in the third quarter of 2023 and the plant expected to be operational by 2025.
GM continues to strengthen its domestic supply base for EV production, not only by securing a steady supply of manganese sulfate but also by directly investing in other key commodities like lithium and nickel, as well as cathode active material (CAM) and CAM precursor.
Additionally, GM and its joint venture partners are actively installing 160GWh of battery cell manufacturing capacity in the United States, while suppliers are relocating production of permanent magnets and other EV components to North America. These initiatives have already resulted in the creation of thousands of jobs in various states and provinces, including California, Louisiana, Nevada, Texas, Ohio, Michigan, Tennessee, Ontario and Quebec.
General Motors currently sports a Zacks Rank #1 (Strong Buy). The legacy U.S. automaker has gained 6% in the past year against the industry’s fall of 2.3%.
Image Source: Zacks Investment Research
Other Top-Ranked Auto Picks
Some other top-ranked stocks in the auto space include Allison Transmission Holdings (ALSN - Free Report) , AB Volvo (VLVLY - Free Report) and Subaru Corporation (FUJHY - Free Report) , each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Allison Transmission Holdings’ current-year earnings is pegged at $6.61 per share, which has been revised upward by 9% in the past 60 days. The company’s shares have gained around 40% over the past year. ALSN delivered a trailing four-quarter earnings surprise of 12.8%, on average.
The Zacks Consensus Estimate for Volvo’s current-year earnings has been revised 28% upward in the past 60 days. The consensus estimate for current-year earnings of VLVLY is currently pegged at $2.18, implying year-over-year growth of 36.25%. Volvo’s shares have rallied roughly 22.8% in the past year.
The Zacks Consensus Estimate for Subaru’s current-year earnings has been revised 17% upward in the past 30 days. The consensus estimate for its current year’s earnings has been pegged at $1.29 per share, indicating year-over-year growth of 33%. The company’s shares have gained 1.9% in the past year.