GM to take equity stake in Australian mining company (updated)

QPM Energy

11/10/2022 23:14

(Adds other GM actions, comment from Queensland Pacific)
    By David Shepardson
       WASHINGTON, Oct 11 (Reuters) - General Motors Co  GM.N 
said on Tuesday it will invest up to $69 million and take an
equity stake in Queensland Pacific Metals  QPM.AX  to secure a
new source of nickel and cobalt for battery cells for use in the
U.S. automaker's vehicles.
    GM said the investment will help support electric-vehicle
eligibility for consumer incentives under new, clean energy U.S.
tax credits. GM said the nickel laterite ore is expected to be
processed using a new, proprietary process that helps reduce
waste.
    Under a law passed in August, automakers must source battery
minerals from countries with free trade agreements in order to
qualify for the U.S. consumer EV tax credits.
    The GM investment is to assist in the development of its
proposed Townsville Energy Chemicals Hub (TECH) Project in
Northern Australia. High-grade nickel laterite ore will be
imported from nearby New Caledonia, GM said.    
        GM already has binding agreements securing all battery
raw material supporting its goal of 1 million units of annual
capacity in North America by the end of 2025.
  
        GM said the "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."
  
       Queensland Pacific Metals CEO Stephen Grocott said "GM’s
investment in our company and the associated offtake brings us
one step closer towards construction of the TECH Project."
  
        In August, GM said it was prepaying Livent Corp  LTHM.N 
$198 million for a guaranteed six-year supply of lithium, a deal
that reflects the auto industry's rising worry about a
tightening market for the electric vehicle battery metal.
        Prepaying cash for a guaranteed metal supply is unusual
in the mining industry. Livent produces lithium in Argentina and
has processing facilities in the United States.
  
 (Reporting by David Shepardson; editing by Jonathan Oatis and
David Gregorio)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))