Glencore are the world's largest cobalt producers and under the deal Glencore will provide a minimum 61,200 tonnes of cobalt to GEM between 2020 and 2024.

Cobalt is set to become one of the most important commodities in delivering electric vehicle thanks to rising demand for the metal in the batteries that power them.

It is also used as a super alloy in aircraft engines, and in cemented carbides, which are often used as hard cutting surfaces or drill bits.

China is acutely reliant on cobalt as a battery raw material but two thirds of it comes from the politically precarious Democratic Republic of Congo in Africa.

The LME-traded cobalt price is around $35,000/t and GEM chairman Kaihua Xu said the contract was a cornerstone in their cobalt-sourcing strategy.

"By securing a key battery raw material, GEM clearly demonstrates its ability to implement and deliver its vision for an electrified, carbon-free transportation system," Mr Xu said.

"GEM will continue focusing on the development and the manufacturing of high-quality sustainable cobalt products to meet the fast-growing demand for cobalt-containing battery products."

Glencore copper-cobalt marketing chief Nico Paraskevas said the deal provided a "stable outlet for a significant portion of ... future cobalt hydroxide production".

Cobalt is a by-product of copper production and the Queensland government has said it wants the North West to become a "cobalt capital".