Queensland Pacific Metals’ (ASX:QPM) share price is up 16% heading into the last hour of trade as the company adds another household name to its list of interested corporate partners.
Joining Samsung and LG Chem today in the pipeline of majors interested in QPM’s battery metals project is Detroit-based global automotive giant General Motors (GM).
General Motors will invest US$20.1m (A$32m) in QPM as part of an initial binding commitment, picking up QPM shares at 18cps.
QPM’s project, called the TECH project, is a battery metals play seeking to produce both nickel and cobalt sulfate products compatible with EV battery manufacturing specifications.
Sulphide nickel is crushed, floated, and then a concentrate is produced which acts as a feedstock for the refining of nickel ready to be used by original equipment manufacturers (OEMs) designing EV batteries. Battery compatible cobalt is produced in a similar way.
QPM’s TECH project is broken up into two stages by management, and GM has today won a major concessions with regards to its second stage.
Under the agreement, GM is able to purchase all “uncommitted nickel and cobalt sulfate produced in the first 15 years of Phase 1 of the TECH project.”
Should QPM move ahead with a positive Financial Investment Decision (FID) and should GM decide to extend its offtake rights for Phase 1 to the entire life of the project, the latter will then have the right to purchase 100% of nickel and cobalt sulfate produced in Phase 2 of the TECH play.
QPM today also notes strong ESG credentials were instrumental in winning over GM onto the Australian explorer’s side.
Funding provided by GM will be used to further the project. On top of the US$20.1m made in an initial commitment, QPM also notes GM will make a “FID investment up to US$44m.”
“GM’s investment in our company and the associated offtake brings us one step closer to construction of the TECH Project where we will one day aim to deliver the world’s cleanest produced nickel,” QPM Managing Director Dr. Stephen Grocott said.
“We thank GM for their support of our project and look forward to becoming part of the GM sustainably sourced supply chain.”
“GM’s strategic direction in pursuit of making electric vehicles for all is a perfect fit for Queensland Pacific Metals.”
Meanwhile, GM’s supply chain Vice President Jeff Morrison echoed a similar sentiment.
“The collaboration with QPM will provide GM with a secure, cost-competitive and long-term supply of nickel and cobalt from a free-trade agreement partner.”
Get the latest news and insights direct to your inbox