General Motors has signed a multi-year cobalt supply deal with Glencore as the automaker attempts to secure resources for its upcoming shift to electrification.
The deal will see Glencore provide the EV battery ingredient from its Murrin Murrin operation in Australia, which will be used to power EVs like the Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ.
“GM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure, sustainable manner,” said Jeff Morrison, GM vice president, Global Purchasing and Supply Chain. “Importantly, given the critical role of EVs in reducing the carbon footprint of the transportation sector, this agreement is aligned with our approach to responsible sourcing and supply chain management.”
The financial terms of the deal were not disclosed, nor the exact amount of cobalt that will be supplied or how long the deal will last.
Cobalt makes up only 0.001% of the earth’s crust and is known for its heat-resistant properties. It is the most expensive ingredient in EV batteries and added to lithium-ion cathodes to improve energy density and battery longevity.
GM will need all the cobalt it can get its hands on as the automaker plans to have the capacity to build 1 million EVs in North America by 2025.
Glencore was also recently rumoured to have signed a deal with Tesla to supply up to 6,000 tons of cobalt per year.
