Queensland Pacific Metals (QPM) and General Motors Holdings (GM) have signed a landmark agreement, granting GM the right to purchase uncommitted nickel and cobalt sulphate produced by QPM from its proposed Townsville Energy Chemicals Hub over 15 years.
The agreement, with a conditional commitment of AU$106 million, will support the production and supply of processed battery and critical minerals.
QPM received a non-binding letter of support from Export Finance Australia (EFA) for up to AU$250 million in debt funding for the project.
Federal Minister for Trade and Tourism, Don Farrell, and Federal Minister for Resources and Northern Australia, Madeleine King, have welcomed the agreement, with Mr Farrell saying it highlights Australia’s important role as a global supplier of critical minerals, with both the resource potential and workforce capability to meet rising global demand.
“We are very supportive of commercial efforts to attract international capital and offtake contracts to develop Australia’s critical minerals sector and value-added capacity,” Mr Farrell said.
Mr Farrell said the agreement was another example of Australia forging mutually-beneficial critical minerals partnerships with our major trading partners.
“Australian and US businesses understand the need to ensure reliable supply chains as the world transitions to net zero emissions.
“Critical minerals are essential inputs to high-technology products including those driving the green energy transition.”
Ms King also welcomed the deal.
“This is another great example of Australia using its innovation, technological know-how, and resources processing expertise to fulfil its vision of becoming a global renewable energy superpower,” Ms King said.
“There are huge opportunities for job creation and economic growth in Australia’s growing critical minerals capability.”
