General Motors (GM) has signed a landmark agreement with an Australian company for the production and supply of critical minerals for batteries.
The agreement, which is conditional on the commitment of A$106 million (US$69 million), will grant GM the right to purchase uncommitted nickel and cobalt sulphate produced by Queensland Pacific Metals (QPM) over 15 years from its proposed Townsville Energy Chemicals Hub.
According to GM, the nickel and cobalt will help power a broad portfolio of trucks, SUVs, vans, and luxury vehicles from the car manufacturer, including the Chevrolet Silverado EV, GMC HUMMER EV Pickup and SUV, Cadillac LYRIQ, Chevrolet Blazer EV, and Chevrolet 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 Jeff Morrison, GM vice president of Global Purchasing and Supply Chain.
Morrison said that the agreement demonstrates GM’s “commitment to building strong supplier relationships and is aligned with our approach to responsible sourcing and supply chain management.”
The Australian government will also support the deal, with QPM receiving a non-binding letter of support from Export Finance Australia for up to $250 million in debt funding for the project.
The deal has been welcomed by Australian Minister for Trade and Tourism Don Farrell and Minister For Resources Madeline King.
Farrell said in a press release on Oct. 13 that the agreement was another example of Australia developing mutually-beneficial critical minerals partnerships with major trading partners.
“Australian and U.S. businesses understand the need to ensure reliable supply chains as the world transitions to net-zero emissions,” he said.
“We are very supportive of commercial efforts to attract international capital and offtake contracts to develop Australia’s critical minerals sector and value-added capacity.”
Critical minerals are essential inputs for many so-called renewable technology products, including those being backed by governments like Australia and the United States as they drive their countries economies to adopt carbon-neutrality targets.
A Renewable Energy Superpower
Resource Minister King said that the agreement was an example of Australia using its innovation, technological know-how, and resources expertise to become a global renewable energy superpower.
“There are huge opportunities for job creation and economic growth in Australia’s growing critical minerals capability,” she said.
Meanwhile, the Director of Climate Energy Finance (CEF) Tim Buckley previously told The Epoch Times in April that he believes Australia has the potential to become a world leader in the “green” revolution that is now he says is inevitable given the widespread support. However, the country is lagging behind.
“Australia should be a renewable energy superpower,” Buckley said. “We should be a renewable mining industry superpower.”
He believes that, given Australia’s resource wealth in lithium, rare earths, copper, cobalt, nickel, wind, solar, and hydro, the country has everything needed to benefit from the U.N.-led push for decarbonisation, which Buckley says will see massive investment, employment, and export opportunities in new industries.
“We should be value-adding,” he said. “We’re the world’s biggest supplier of iron ore—38 percent of the world’s iron ore comes from Australia. Why don’t we do a little bit of value-adding before we export it? Why don’t we help China, Japan, and Korea decarbonise their steel industry by exporting them the green steel rather than iron ore?”
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Victoria Kelly-Clark is an Australian based reporter who focuses on national politics and the geopolitical environment in the Asia-pacific region, the Middle East and Central Asia.
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October 16, 2022 at 12:11PM
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General Motors Makes LandMark Agreement With Australian Critical Minerals Company - The Epoch Times
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