General Motors entered an agreement to buy cobalt from Glencore Plc, the top supplier of a key material used in EV batteries.
Concerns are mounting over supply crunches of crucial battery metals like lithium, nickel and cobalt as the auto industry readies itself to roll out more electric vehicles.
Lithium prices have hit record highs while nickel was up 250% at one point last month.
GM reported it had agreed to a multiyear deal for cobalt from Glencore’s Murrin Murrin mine in Australia. Neither company gave details on volumes or prices included in the partnership.
GM plans to build 1 million EVs a year in North America by the end of 2025.
The rapid push toward EVs has increased demand for battery metals as the pandemic exacerbates supply constraints, and higher prices threaten auto manufacturer’s margins.
Glencore has similar cobalt supply agreements with Tesla and BMW. Vale SA and BHP Group have struck nickel deals with automakers.