Australian mining companies ink deals with auto giants

This week saw two major deals announced between local mining companies and two of the largest carmakers in the world.

The international automotive industry continues to put its faith in Australian metal mining companies, with two more deals being announced this month.

On Wednesday, a long-term strategic collaboration was announced between US car giant General Motors and Queensland Pacific Metals – a company dedicated to the sustainable production of nickel sulphate and cobalt sulphate for use in lithium-ion batteries.

“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,” Jeff Morrison, General Motors Vice President, Global Purchasing and Supply Chain said in a statement.

“Importantly, the agreement demonstrates our commitment to building strong supplier relationships and is aligned with our approach to responsible sourcing and supply chain management.”

MORE: General Motors reveals its electric-car rollout plans

The very same day, Western Australian nickel and cobalt mining company GME Resources announced it had signed a non-binding memorandum of understanding with Stellantis – the recently-formed parent company of 16 car brands, including Alfa Romeo, Citroen, Fiat, Jeep, Maserati, Peugeot, and Ram, among others.

“Every day, Stellantis is working to provide our customers clean, safe affordable, cutting-edge freedom of mobility,” said Maxime Picat, Stellantis Chief Purchasing and Supply Chain Officer.

“Securing the raw material sources and battery supply will strengthen Stellantis’ value chain for electric vehicle battery production and equally important, help the Company achieve its aggressive decarbonization target.”

MORE: Stellantis secures billions in credit ahead of brand electrification

In August 2022, an Australian mining company entered an agreement with BMW to supply battery-grade lithium, a month after Ford inked a deal with Liontown Resources to supply lithium from its mine in Western Australia.

In October 2021, BHP announced it would supply Toyota with nickel sulphate for its electric vehicle batteries. A year earlier, Tesla entered a five-year agreement with lithium company Piedmont.

While not all of the metals companies have local mining operations, car manufacturers tend to favour Australian organisations due to their ethical business practices, the country’s stable political environment, and our favourable taxation.

The post Australian mining companies ink deals with auto giants appeared first on Drive.

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