GM announces multiyear agreement to source raw material for EVs

General Motors has locked in an arrangement to secure a raw material critical to its electric vehicle batteries.

GM and Glencore, a company that mines, produces and recycles raw materials, said Tuesday they have entered into a multiyear sourcing agreement. 

Glencore, which is headquartered in Baar, Switzerland, will supply GM with cobalt from its Murrin Murrin operation in Australia. Cobalt is an important metal used in the production of EV batteries. It gives the batteries energy, density and longevity.

GM will use the cobalt processed from Australia in its Ultium battery cathodes.

GM’s ability to secure cobalt helps ensure It can produce the battery cells needed to deliver on its promise of bringing 30 new EVs to market by 2025. It also helps GM inch closer to its goal to be a carbon neutral company by 2040.

“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.”

GM’s Ultium battery platform currently powers the 2022 GMC Hummer EV pickup and the 2023 Cadillac Lyriq SUV, which is in production now. It will also underpin future vehicles such as 2024 Chevrolet Silverado EV, an Equinox EV, a Blazer EV and more. 

Both GM and Glencore, which plans to achieve net zero total emissions by 2050, are members of the Responsible Minerals Initiative and Glencore’s Murrin Murrin operation follows sustainable regulations for processing the minerals.

“Future-facing commodities like cobalt play a pivotal role in decarbonizing energy consumption and the electric vehicle revolution,” said Ash Lazenby, Glencore US Cobalt marketer and trader.

By the end of 2025, GM plans to have capacity to build 1 million EVs in North America. It has recently announced steps to secure its EV supply chain.

Last month GM said it will build a new factory in Quebec, Canada, as part of a joint venture with South Korean chemical maker POSCO Chemical that will be key to Michigan’s future building electric vehicles.

GM and POSCO are working with the governments of Canada and Quebec to build a new factory in Bécancour, Quebec, which is about midway between Montreal and Quebec City. The joint venture will eventually feed cathode active material (CAM) to several of GM’s U.S. battery cell plants, including one to be built in Lansing.

CAM is a key battery ingredient consisting of processed nickel, lithium and other materials representing about 40% of the cost of a battery cell.

Last week, GM and America Honda Motor Co. said they will codevelop a new series of “affordable” EVs priced around $30,000 that will go on sale starting in 2027.

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