GM this week announced a new multi-year supply agreement with Glencore, which will see the Swiss mining company supply the automaker with battery-grade cobalt.
Cobalt, which makes up a scant 0.001 percent of the earth’s crust, has heat-resistant properties and is used in lithium-ion batteries to create cathodes. Through its partnership with Glencore, GM will have access to cobalt from the company’s Murrin Murrin mining operation in Australia. Ash Lazenby, Glencore U.S. Cobalt marketer and trader, said the company is not only a top producer of rare earth materials for EVs, but also a major recycler of these metals.
“Future facing commodities like cobalt play a pivotal role in decarbonizing energy consumption and the electric vehicle revolution,” Lazenby said. “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.”
Supply agreements like this one with Glencore will ensure that GM has consistent access to these rare earth materials as it begins building electric vehicle motors and batteries in much larger quantities. It previously reached similar EV supply agreements with companies like Posco Chemical for Cathode Active Material, MP Materials for alloy flakes and VAC for permanent magnets. GM is also working with GE to develop a rare earth material value chain, which will make it easier for GM to access these materials – even when they are also in demand from rival automakers like Toyota, VW, Tesla and Ford.
“GM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure sustainable manner,” Jeff Morrison, GM’s vice president of Global Purchasing and Supply Chain, said in a prepared statement.
GM hopes to reach 400,000 battery-electric vehicles sold globally by 2023 and wants to become the North American EV market leader by mid-decade. Some future GM EV nameplates that will hit the market before the end of 2023 include the Cadillac Lyriq crossover, Chevy Silverado EV, Chevy Equinox EV, Chevy Blazer EV, GMC Sierra EV and GMC Hummer EV SUV.
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Comments
Great, but the rest of the supple chain can’t be counted on.
400,000 in two years from a company who is literally throwing out the internal combustion engine and pinning their hopes and dreams on electric vehicles? Go ahead and tell me how “things take time” when our current administration is forcing this change on us. Once the commitment has been made you can’t just tiptoe around this. I understood this as all in or bust.
What law has the current Administration pass that is forcing GM or any other Company into BEV’s?
If anything it is Completely driven by China and Europe. Automakers cannot split their R&D budgets with two entirely different Technologies.
GM announced their zero/zero/zero while Trump was still very much the President. Tech changes all the time and disruptive Tech simply takes over hence why it is called Disruptive Tech!!!
It is a very simple adopt or go extinct situation…..no middle ground during Disruptive times.
As a GM shareholder but more importantly as a HUGE GM fan I am glad that GM is going All In. It will save them and they might even become number two and once and for all overtake Toyota.
The biggest problem GM doesn’t do anything for our “Great Country” As a shareholder you’re all in on losing money big time.
@Old Farm Boy
Does GM not have jobs in America?
What are you even talking about?
Haven’t lost money as of yet and because of their quick shift I believe I will make even more but keep hating on GM I guess.
@Momolos its pretty lonely defending GM on this site these days. Change is difficult but inevitable; just ask Kodak how things went catching up when there is a huge upheaval.
@Ben
Exactly.