Glencore and General Motors announced today a multi-year sourcing agreement in which Glencore will supply GM with cobalt from its Murrin Murrin operation in Australia.
Cobalt is an important metal in the production of EV batteries, and the cobalt processed from Australia will be used in GMโs Ultium battery cathodes, which will power electric vehicles such as the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.
Both Glencore and General Motors are members of the Responsible Minerals Initiative (RMI), and Glencoreโs Murrin Murrin operation is conformant with the OECD-aligned Responsible Minerals Assurance Process.
โGM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure sustainable manner,โ said Jeff Morrison, GM vice president, Global Purchasing and Supply Chain. โImportantly, 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.โ
โFuture 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," said Ash Lazenby, Glencore U.S. Cobalt marketer and trader.
Cobalt is a metal that makes up only 0.001% of the earthโs crust. It is known for its heat-resistant properties and is added to lithium-ion battery cathodes to improve energy density and battery longevity. By the end of 2025, GM plans to have capacity to build 1 million electric vehicles in North America, and has announced a series of actions to create a new and more secure EV supply chain, including projects targeting key EV materials and components:
- Cathode Active Material (CAM) with POSCO Chemical. GM and POSCO Chemical are building a new facility in Quebec, Canada, as part of their joint venture to produce CAM for GMโs Ultium batteries.
- Lithium with Controlled Thermal Resources (CTR) to secure lithium produced by the first stage of its Hellโs Kitchen Project in California.
- Rare earth materials with GE, to develop a rare earth value chain.
- Alloy flakes with MP Materials, who will establish the first North American processing site for alloy flakes. The company will then expand into magnet manufacturing around 2025 at its new production facility in Fort Worth, Texas.
- Permanent magnets with VAC, the largest producer of permanent magnets in the Western Hemisphere with nearly 100 years of experience. VAC will establish a North American footprint to support GMโs magnet requirements starting in 2024, including locally sourced raw materials and finished magnet production.