Glencore Agrees with GM to Supply Cobalt for Electric Vehicles

In the middle of a global rush for minerals required for the rising electric vehicle ecosystem, American automaker General Motors Company (GM) has announced that it will purchase cobalt from Australian miner Glencore from its Murrin operations. The size of the deal remains undisclosed by the two players.

Cobalt makes up just 0.001% of earth’s crust and is not evenly distributed. As per the announcement, cobalt processed from Australia will be employed in Ultium battery cathodes of GM to power electric vehicles manufactured by the company such as Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.

The mineral is heat resistant that allows batteries to not catch fire and added to lithium-ion battery cathodes, it raises energy density and battery longevity. Presently, most supplies come from DR Congo, where there are major issues on both the mining conditions and profiteering by illegal mining.

Both GM and Glencore will look to establish a resilient and sustainable supply chain through collective industry and other stakeholders’ platforms.

Jeff Morrison, Vice President, Global Purchasing and Supply Chain, GM, said, “GM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure sustainable manner. 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.”

Ash Lazenby, Marketer and Trader, Glencore U.S. Cobalt, said, “We are delighted to announce this collaboration and support General Motors in delivering its electric vehicle strategy. Future facing commodities like cobalt play a pivotal role in decarbonizing energy consumption and the electric vehicle revolution. Glencore is already a leading producer, recycler and supplier of these commodities, which underpin our own ambition of achieving net zero total emissions by 2050.”

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. Batteries don’t catch fire. GM is targeting to manufacture 1 million electric vehicles in North America alone by the end of 2025 and this, the company says, is possible only by securing a sustainable EV supply chain. Hence, GM is undertaking projects that will ensure secured supply of key materials required in the making of EVs.

GM has also signed an agreement with General Electricals Co. to develop rare earth and other materials based supply chain. Last year, GM also declared that it will be investing in an American lithium project that has the capacity to become the largest in the USA by 2024.