Let's start off by answering the last question asked in the teaser paragraph for this story.
Why is this important to GM? In a Word, Batteries, specifically the Ultium battery system, part of the Ultium platform.
To quote the press release from GM and Glencore:
In a single world COBALT!
To understand the importance of this material, it is best to understand that Cobalt makes up only 0.001% of the earth's crust. Well known for its heat-resistant properties and a critical part of Lithium-ion battery cathodes that improve energy density and battery longevity.
Cobalt is an important metal used in the production of EV batteries as part of the Ultium battery cathodes which will power electric vehicles such as the GMC Hummer EVs, Chevrolet Silverado EV and Cadillac LYRIQ.
Glencore is one of the world's largest globally diversified natural resource companies, founded in 1970s as a trading company, it has become a major producer and marketer of commodities, employing 135,000 people world wide.
Glencore operations comprise of approximately 150 mining, metallurgical and oil production assets.
Both Glencore and GM are members of the Responsible Minerals Initiative (RMI) and Glencore's Murrin Murrin operation conforms to the OECD-aligned Responsible Minerals Assurance Process.
Jeff Morrison, GM Vice President of Global purchasing and supply chain stated the following:
“GM and our suppliers are building an EV ecosystem that is focused on sourcing critical raw materials in a secure sustainable manner,” “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.”
GM is a global company focused on advancing an all-electric future that is inclusive and accessible to all. The Ultium battery platform is a key part to powering everything from the mass-market auto to the high-performance vehicles produced by GM.
This contract helps GM ensure production of EVs as it delivers more than 1 million a year by 2025 and supports existing technology needs while new all-solid-state batteries are researched.