Glencore and General Motors (GM) has announced a multi-year sourcing agreement for cobalt supplies to bolster supply chains between both companies.
The miner will supply GM with cobalt from its Murrin Murrin operation in Australia.
The deal continues the clamour among car giants to secure raw materials amid the energy transition and breakthrough of electric vehicles (EV) into the mainstream.
Cobalt is a metal known for its heat-resistant properties and is added to lithium-ion battery cathodes to improve energy density and battery longevity.
It is a key metal in the production of EV batteries, and the cobalt processed from Australia will be used in GM’s Ultium battery cathodes.
This will power EVs such as the Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ.
Last year, EV sales surpassed diesel cars in Europe powered by a 115 per cent boom, representing more than a fifth of vehicles sold were electric in 2021.
Ash Lazenby, Glencore US Cobalt Marketer and Trader said: “Future facing commodities like cobalt play a pivotal role in decarbonising energy consumption and the electric vehicle revolution.”
By the end of 2025, GM plans to have capacity to build one million electric vehicles in North America.
This includes securing deals for EV materials.
So far, it has entered into arrangements with MP Materials for alloy flakes and cathodes with POSCO Chemical.
It also has its own facilities to ramp up lithium and rare earth material production.