Element 25 (ASX:E25) has agreed to supply General Motors (GM) with battery grade high-purity manganese sulphate for their EV (electric vehicle) battery requirements.

The company said it will supply up to 32,500 metric tons of manganese sulphate annually, which will support GM's annual production of more than 1 million EV's in North America.

It also said GM will provide the company with a $US85M loan to partially fund the construction of a new facility in Louisiana for production of battery-grade manganese sulphate.

Element 25 added the facility may be the first of its kind in the US, and the company will produce the sulphate by processing manganese concentrate from its mining operations in Western Australia.