GM buys into Aussie battery metals refiner to secure EV and home energy growth

GM is beginning to secure both ends of its supply chain, with an investment into a nickel and cobalt refiner in Australia alongside the rollout of a Tesla-rivalling home solar-storage system.

The American carmaker will invest $US69 million ($110.1 million) into Queensland Pacific Metals in order to secure what it calls “cost competitive” nickel and cobalt for its EV batteries.

It will spend almost $40 million in equity up front, with the remainder triggered by a final investment decision on the Aussie miner’s flagship Townsville Energy Chemicals Hub, which has a construction start date pencilled in for 2023.

GM ‘s investment buys it offtake rights to about 6,000 tonnes of nickel sulphate and 800 tonnes of cobalt sulphate per year, rising to 16,000 tonnes and 1,800 tonnes once the Queensland miner has satisfied its commitments to LG and South Korea’s POSCO.

“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.

Queensland Pacific Metals’ TECH project is a battery metals purifier that will process high-grade laterite ore from New Caledonia using a process that requires no tailings dam and less waste than traditional extraction processes.

The combination of uncertain lithium supply chains and rising demand for electric vehicles is leading car makers to hit the mines.

“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.”

And at the other end of the chain…

A secure supply chain of lithium battery metals is critical for the US carmaker, which this year doubled its target EV sales to 2 million by 2025 and is moving quickly to grab other parts of battery market share too.

Today it said it is creating a new brand called GM Energy to house its Tesla Powerwall-rivalling home energy management (HEM) system, the Ultium Home.

It will work with US solar tech company SunPower to package together integrated EV and battery solutions, solar panels and home energy storage, with a key feature being enabling drivers to do bi-directional charging at home.

A HEM will connect it all together.

The charging set-up is slated for sale to US homes in 2023.

HEMs are the next big thing in energy tech. GM will be going up against entities such as the deep-pocketed German consortium that is intent on buying up 80 HEM companies around the world by 2024.