General Motors Co. (NYSE: GM ) has entered into a multi-year agreement with Swiss multinational commodity trading and mining company Glencore PLC to source cobalt for its electric vehicles.
GM will source the cobalt from Glencore’s operations in Australia for its proprietary batteries to power its electric vehicles such as the Chevrolet Silverado EV, GMC Hummer EV, and Cadillac LYRIQ.
GM has pledged to debut 30 new models globally by 2025 and build one million EVs in North America.
In a statement released by the company, GM’s vice president of Global Purchasing and Supply Chain, Jeff Morrison said, “GM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure sustainable manner.
Concerns are mounting about potential supply crunches of crucial battery metals such as lithium, nickel, and cobalt, as car manufacturers push aggressively for a shift towards electric vehicles.
Cobalt is a metal that makes up only 0.001% of the earth’s crust. It is known for its heat-resistant properties and is added to lithium-ion battery cathodes to improve energy density and battery longevity.
Lithium prices are near a record high, while nickel surged as much as 250% at one point last month amid a short squeeze on the London Metal Exchange.
(With inputs from GM)