GM, Glencore ink multi-year cobalt supply agreement
General Motors has announced a multi-year sourcing agreement with multinational commodity trading and mining company Glencore. Accordingly, the latter will supply GM with cobalt from its Murrin Murrin nickel-cobalt mining operation in Australia.
Cobalt is an important metal in the production of EV batteries, and the cobalt processed from Australia will be used in GM's Ultium battery cathodes, which will power electric vehicles under the company's various brands including Chevrolet, GMC, and Cadillac.
The agreement builds on a commitment from both the companies to create strong, sustainable, and resilient supply chains through collective industry and multi-stakeholder platforms. Both Glencore and General Motors are members of the Responsible Minerals Initiative (RMI), and Glencore's Murrin Murrin operation is conformant with the OECD-aligned Responsible Minerals Assurance Process.
"GM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure sustainable manner," said 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", he added.
"We are delighted to announce this collaboration and support General Motors in delivering its electric vehicle strategy," said Ash Lazenby, Glencore U.S. Cobalt marketer, and trader. "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, he added.
Cobalt is a metal that makes up only 0.001 percent 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.