General Motors Announces Multi-Year Cobalt Supply Agreement For EVs

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(CBS DETROIT) -- General Motors announced Tuesday that it will be entering a multi-year agreement with Switzerland-based company Glencore to supply cobalt for electric vehicles.

According to a press release, Glencore's Murrin Murrin operation in Australia will supply cobalt, which will be processed and used in GM's Ultium battery cathodes that power vehicles including the Chevy Silverado EV, GMC Hummer EV and Cadillac Lyriq.

Officials say cobalt is an important metal used in the production of EV batteries. It is known for its heat-resistant properties and is added to "lithium-ion battery cathodes to improve energy density and battery longevity."

"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."

The companies say the agreement "builds on a commitment both companies share to create strong, sustainable and resilient supply chains through collective industry and multi-stakeholder platforms."

GM says it plans to build 1 million electric vehicles in North America by the end of 2025.

"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 of 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."