By Stephen Nakrosis

General Motors Co. said Tuesday it made a strategic investment in Queensland Pacific Metals of Australia, securing a new source of "cost-competitive nickel and cobalt for Ultium battery cells."

According to GM, it expects to make a $69 million equity investment, which will help to accelerate nickel production at Queensland Pacific's planned Townsville Energy Chemicals Hub project in Northern Australia. Construction on the project is expected to begin next year.

"The sustainable, high-purity battery materials refinery is being developed in response to the growing demand for battery materials for electric vehicles, particularly nickel and cobalt," GM said. The company added that nickel laterite ore is expected to be processed "using a new and proprietary process that helps reduce waste with no requirement of a tailings dam."

GM also said the long-term supply commitment builds on recent deals that secured all raw material for batteries to support the company's goal of "one million units of EV capacity in North America by the end of 2025."

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

October 11, 2022 16:51 ET (20:51 GMT)

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