By Abhijith Ganapavaram
April 12 (Reuters) – General Motors Co (GM.N) said on Tuesday it would buy cobalt from miner Glencore PLC (GLEN.L) to use in its electric vehicles (EVs), as automakers around the world scramble to stock up on the critical raw material amid supply chain disruptions.
Global automakers, ranging from EV leader Tesla Inc (TSLA.O) to Volkswagen (VOWG_p.DE), are splurging billions of dollars on developing vehicles for a market that could be worth $5 trillion over the next decade.
The prices of these rare metals have soared to multi-year highs.
Cobalt, a metal that makes up 0.001% of the earth’s crust, ensures cathodes do not easily overheat or catch fire and helps extend the life of batteries, which automakers usually guarantee for eight to 10 years.
They did not disclose the size of the deal.
GM, which has laid out plans to ramp up capacity to build one million EVs in North America by the end of 2025, also has an agreement with General Electric Co (GE.N) to develop a supply chain of rare earth and other materials. read more