South32 aims to accelerate development of the first new US manganese mine for decades as carmakers rush to secure supply of the metal needed in EV batteries.

The venture - between Umicore and Volkswagen's battery unit PowerCo - also plan to collaborate on recycling metals from battery materials.

The initiative, launched in June, is designed to funnel investment toward developing countries with mining projects that adhere to stricter environmental, social and governance standards.

Raw material costs have more than doubled since Elon Musk said Tesla will produce 20 million vehicles per year before 2030.

The world's biggest producer of manganese said its underlying earnings for the year ended June 30 came in at $2.6 billion, compared with $489 million a year ago.

South Korean battery makers imported more than 80% of the key minerals from China in 2020.

Based on a comparison of one of the most promising solid-state batteries to lithium-ion technology and using sustainable lithium sources, a battery's carbon footprint could be cut by as much as 39%.