WASHINGTON — Normal Motors mentioned on Tuesday it can make investments as much as $69 million and take an fairness stake in Queensland Pacific Metals to safe a brand new supply of nickel and cobalt for battery cells to be used within the U.S. automaker’s autos.

GM mentioned the funding will assist assist EV eligibility for shopper incentives underneath new, clear power U.S. tax credit. GM mentioned the nickel laterite ore is anticipated to be processed utilizing a brand new, proprietary course of that helps scale back waste.

Underneath a regulation handed in August, automakers should supply battery minerals from international locations with free commerce agreements with a purpose to qualify for the U.S. shopper EV tax credit.

The GM funding is to help within the improvement of its proposed Townsville Vitality Chemical compounds Hub (TECH) Undertaking in Northern Australia. Excessive-grade nickel laterite ore can be imported from close by New Caledonia, GM mentioned.

GM already has binding agreements securing all battery uncooked materials supporting its aim of 1 million items of annual capability in North America by the tip of 2025.

GM mentioned the “new collaboration builds on these commitments as we glance to safe provide by the tip of the last decade, whereas additionally serving to proceed to broaden the EV market.”

Queensland Pacific Metals CEO Stephen Grocott mentioned “GM’s funding in our firm and the related offtake brings us one step nearer in direction of building of the TECH Undertaking.”

In August, GM mentioned it was prepaying Livent Corp. $198 million for a assured six-year provide of lithium, a deal that displays the auto trade’s rising fear a few tightening marketplace for the electrical automobile battery metallic.

Prepaying money for a assured metallic provide is uncommon within the mining trade. Livent produces lithium in Argentina and has processing amenities within the U.S.