General Motors will invest in an Australian mining firm

General Motors Co stated on Tuesday that it will invest up to $69 million and acquire a stake in Queensland Pacific Metals to secure a new supply of nickel and cobalt for battery cells used in U.S. manufacturer vehicles.

GM noted that the investment will enable electric vehicles to qualify for consumer incentives under the United States' new clean energy tax credits. The nickel laterite ore, according to GM, will be processed using a new, patented procedure that reduces waste.

A law enacted in August requires automakers to get battery materials from nations with free trade agreements in order to qualify for U.S. consumer EV tax credits.

GM's investment will help the development of its projected Northern Australia Townsville Energy Chemicals Hub (TECH) Project. GM announced that nickel laterite ore of superior quality will be brought from New Caledonia.

GM has already secured the necessary battery raw materials to reach its goal of 1 million yearly units in North America by 2025.

GM claimed that the "new collaboration builds on these commitments as we seek to secure supply through the end of the decade and contribute to the growth of the EV industry."

The CEO of Queensland Pacific Metals, Stephen Grocott, remarked, "GM's investment in our company and the accompanying offtake brings us one step closer to building the TECH Project."

GM revealed in August that it was prepaying Livent (NYSE:LTHM) Corp $198 million for a guaranteed six-year supply of lithium, a transaction that demonstrates the auto industry's rising anxiety over a tightening market for the metal used in electric vehicle battery cells.

It is uncommon in the mining industry for a metal supply guarantee to be paid for in advance. Livent operates producing facilities for lithium in the United States and Argentina.