Tue, October 11, 2022
- Agreement includes equity investment to help accelerate nickel production at Queensland Pacific Metals’ proposed Townsville Energy Chemicals Hub (TECH) Project in Northern Australia
- Long-term supply commitment builds on other recent agreements that have already secured all battery raw material to support GM’s goal of 1 million units of EV capacity in North America by the end of 2025
- Material sourced from Queensland Pacific Metals will help support EV eligibility for consumer incentives under the new clean energy tax credits
DETROIT – General Motors Co. (NYSE: GM) has secured a new source of cost-competitive nickel and cobalt for Ultium battery cells after making a strategic investment in Queensland Pacific Metals of Australia. The nickel laterite ore is expected to be processed using a new and proprietary process that helps reduce waste with no requirement of a tailings dam. As part of the agreement, GM is expected to invest up to $69 million in Queensland Pacific Metals for the development of its proposed Townsville Energy Chemicals Hub (TECH) Project in Northern Australia.
The nickel and cobalt from Queensland Pacific Metals will help power a broad portfolio of trucks, SUVs, vans and luxury vehicles from GM, 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, Global Purchasing and Supply Chain. "Importantly, the agreement demonstrates our commitment to building strong supplier relationships and is aligned with our approach to responsible sourcing and supply chain management."
“We are absolutely delighted to collaborate with General Motors,” said Stephen Grocott, CEO, Queensland Pacific Metals. “GM’s strategic direction, company values and focus on sustainability in its pursuit of making electric vehicles for all is a perfect fit for Queensland Pacific Metals and our TECH Project. 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. 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.”
Queensland Pacific Metals’ proposed TECH Project is poised to become a leading supplier of high-grade, advanced battery materials. The sustainable, high-purity battery materials refinery is being developed in response to the growing demand for battery materials for electric vehicles, particularly nickel and cobalt.
High-grade nickel laterite ore will be imported from nearby New Caledonia for processing at the TECH facility using a patented refining and recycling process called the DNi ProcessTM, which, according to Queensland Pacific Metals, utilizes environmentally-conscious methods for extracting nickel, cobalt and other precious metals from the laterite.
Queensland Pacific Metals has obtained the rights to use the DNi Process™ from Altilium Group. Key features of the DNi Process™ include more than 98% nitric acid recycling, no tailings dam requirements and less waste than traditional extraction processes.
The TECH Project is expected to begin construction in 2023.
"GM already has binding agreements securing all battery raw material supporting our goal of 1 million units of annual capacity in North America by the end of 2025," said Morrison. "This new collaboration builds on those commitments as we look to secure supply through the end of the decade, while also helping continue to expand the EV market."
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which will power everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.