US-based General Motors and Glencore have signed a multi-year cobalt supply agreement in which Glencore will supply GM with cobalt from its Australia operations, Kallanish reports.

The cobalt will come from Swiss-based Glencore’s Murrin Murrin mining operation in Western Australia, the companies say in a joint announcement, as companies globally scramble to secure needed raw materials for electric vehicle batteries. Terms of the deal were not disclosed.

Cobalt is a critical metal in the production of EV batteries. It gives batteries energy density and longevity.

The Australian cobalt will be used in GM’s Ultium battery cathodes that will power the Chevrolet Silverado EV, the GMC Hummer EV and the Cadillac Lyriq. GM has pledged to bring 30 new EVs to market and to produce 1 million electric vehicles in North America by 2025.

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

The nickel-cobalt open-pit mine was opened as a joint venture in 1999, but the operation is wholly owned by Glencore. It is located 45 kilometres east of Leonora and 880 km east of Perth in the northeast Goldfields region of Western Australia. It produces about 35,000 tonnes/year of nickel and 2,900 t/y of cobalt.