GM just announced a new collaborative agreement with Australian mineral exploration company Queensland Pacific Metals to secure a source of nickel and cobalt, raw materials required in the production of new GM EVs.
The cost-competitive nickel and cobalt will be used for the production of new GM Ultium batteries, with the new agreement building on additional long-term commitments to support GM’s goal of reaching 1 million units of EV production capacity in North America by mid-decade. GM says the raw materials will be used in building a broad range of all-electric vehicles, including the Chevy Silverado EV, GMC Hummer EV, Cadillac Lyriq, Chevy Blazer EV, and Chevy Equinox EV.
“The collaboration with Queensland Pacific Metals will provide GM with a secure, cost-competitive and long-term supply of nickel and cobalt from a free-trade agreement partner to help support our fast-growing EV production needs,” said GM vice president, Global Purchasing and Supply Chain, Jeff Morrison. “Importantly, the agreement demonstrates our commitment to building strong supplier relationships and is aligned with our approach to responsible sourcing and supply chain management.”
The agreement also includes an investment of $69 million to speed-up nickel production at Queensland Pacific Metals’ proposed Townsville Energy Chemicals Hub (TECH) Project in Northern Australia. Nickel laterite ore will be imported from New Caledonia for processing at the TECH facility via a new proprietary method that reduces waste and does not require a tailings dam. Dubbed the DNi Process, Queensland Pacific Metals says that the new processing method utilizes environmentally conscious processes for extracting precious metals. The TECH Project is expected to begin construction in 2023.
“GM’s investment in our company and the associated offtake brings us one step closer towards construction of the TECH Project where we will one day aim to deliver the world’s cleanest produced nickel and cobalt,” said CEO, Queensland Pacific Metals, Stephen Grocott. “We thank GM for their belief in our TECH Project and look forward to becoming part of the GM sustainably sourced raw material supply chain.”