The EV materials supply chain scramble is intensifying as automakers rush to secure critical minerals for battery production amid global shortages, policy pressure, and ESG requirements. New deals by Ford and GM reflect push to secure needed components.

With the push for electric vehicles rapidly expanding, General Motors and Ford are moving to secure supplies of the critical minerals needed for EVs. 

The search for suppliers has become more intense following the sanctions imposed on Russia following its invasion of Ukraine. Russia is a significant source of the metals used in batteries and cars. 

General Motors signed a deal with mining giant Glencore for a supply of cobalt from its Murrin Murrin operation in Australia. Cobalt is an essential metal in the production of EV batteries, and the cobalt processed from Australia will be used in GM’s Ultium battery cathodes, which will power electric vehicles such as the Chevrolet Silverado EV, GMC Hummer EV, and Cadillac Lyriq, officials said. 

“GM and our suppliers are building an EV ecosystem that focuses on sourcing critical raw materials in a secure and sustainable manner,” said Jeff Morrison, Vice President of Global Purchasing and Supply Chain at GM, which plans to build 1 million electric vehicles in North America by the end of 2025. 

The agreement builds on a commitment both companies share to create strong, sustainable, and resilient supply chains through collective industry and multi-stakeholder platforms. Cobalt makes up only 0.001% of the Earth’s crust. It is known for its heat-resistant properties and is added to lithium-ion battery cathodes to improve energy density and battery longevity. 
 
GM has announced a series of actions to create a new and more secure EV supply chain, including projects targeting key EV materials and components, such as cathode active material, lithium, rare earth materials, and permanent magnets. 

Ford makes deal for lithium from South America 

Meanwhile, Ford announced a deal with a clean lithium developer. Australia’s Lake Resources NL produces approximately 25,000 tons of lithium annually from a site now under development in Chile. 

“Ford is sourcing deeper into the battery supply chain,” said Lisa Drake, Ford’s vice president of EV Industrialization.  

“This is one of several agreements we’re exploring to help us secure raw materials to support our aggressive EV acceleration,” she said. 

According to the trade publication, Metal.com, the Kachi project, located in northern Argentina near the Chilean border, is expected to cost $540 million and will be operational in 2024, using direct lithium extraction technology, which can extract lithium from brine and uses an area much smaller than that of open-pit mines and evaporation ponds. 

In addition to Ford, automakers such as General Motors (GM), BMW, and Stellantis have also signed supply agreements with companies that plan to utilize DLE technology. 

Lithium is a key raw material for making batteries for electric cars, and carmakers are scrambling to find stable sources. Last month, Tesla, the leader in electric vehicles, struck a deal with Australian lithium miner Core Lithium.

The Race Is On — Secure Critical EV Materials Through Circular Innovation

With geopolitical uncertainty, rising demand, and pressure from tax credits, automakers can no longer rely on conventional sourcing. The key to resilience? Local, circular, and recovered materials.

Klean Industries Helps Automakers Build Secure Supply Chains:

✅ Advanced battery recycling for lithium, cobalt, graphite
✅ Recovered carbon upgraded to high-purity graphite
✅ KleanLoop™ blockchain for full traceability & ESG compliance
✅ Strategic partnerships for circular battery material sourcing

Contact Klean Industries to future-proof your EV supply chain with clean, compliant, and circular solutions » GO.