Australian company Element 25 will begin supplying General Motors (GM) with manganese sulphate, Reuters reported.

This reportedly is the second GM deal for Australian battery minerals after it took an equity stake in Queensland Pacific Metals for the supply of nickel and cobalt.

Element 25 has now accumulated 65% of its first phase of production after a supply agreement was inked with Stellantis in January.

Reuters said GM would purchase around 32,500 tonnes of manganese sulphate annually over seven years.

Production would take place at a US$290m battery grade manganese sulphate plant in Louisiana.

GM would provide Element 25 with an $85m loan to partially fund construction of the facility.

The plant was expected to open in 2025.