Under the deal, GM has made a conditional commitment for up to $US69 million ($A108 million) in shares in QPM, including an initial $US20 million. It would also have the right to buy all of QPM’s uncommitted nickel and cobalt sulfate in the first 15 years of production.

The deal pushed up QPM shares by 23 per cent this morning to 18 cents.

The offtakes would be used in electric vehicle batteries.

It follows offtake deals previously struck with Korea’s POSCO and LG.

Under a proposed phase two expansion, GM would have the right for all production.

QPM said the deal moved it closer towards a final investment decision of the Townsville project and it has previously stitched up a deal with Société Le Nickel for ore supply to the Townsville Energy Chemicals Hub (TECH). It also has $250 million in conditional debt funding from Export Finance Australia and

“Under the investment agreement, GM has agreed to invest up to $US69 million in equity in QPM, comprised of the investment investment of up to $US25 million and a financial investment decision investment of up to $US44 million,” QPM said.

“At each opportunity, GM will invest the maximum possible under its commitment subject to GM’s total shareholding in QPM being less than 10 per cent.”

The company said the investment provided a “cornerstone” position to any fund raising.

It would hold an option for about 6000 tonnes a year of nickel, ramping up to 16,000 tonnes when commitments to LG and POSCO were met. It would also have an option over 800 tonnes a year of cobalt ramping up to 1800 tonnes.

QPM managing director Stephen Grocott said the company was “absolutely delighted”.

“GM’s investment in our company and the associated offtake brings us one step closer towards construction of the TECH project where we will one aim to deliver the world’s cleanest produced nickel and cobalt,”

GM is a global company that sells Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands.