GM confident in nickel supply despite Russian invasion of Ukraine

Even as Russia's invasion of Ukraine increases the price of nickel, a key metal for electric vehicle batteries, General Motors CEO Mary Barra is confident the automaker will find adequate supply over the next three to five years.

"There are other uses of nickel, so we're working deep in the supply chain to really understand and make sure we're covered," Barra told CNBC on Tuesday. "Our supply chain team is just phenomenal. They have been working ahead and to make sure we have secure supply."

The invasion could complicate automakers' EV development and has led to a surge in oil prices, at a time when commodity costs are already rising.

Average gasoline prices in the U.S. have reached $4.06 per gallon, up $1.30 from a year ago, according to AAA. That marks the highest average since 2008.

Today's portfolio of vehicles is more fuel-efficient than the vehicles most consumers drove in 2008, Barra said.

"We're seeing a pretty resilient customer," she said. "There's pent-up demand, but EVs will be the ultimate solution."

The Russian invasion could also lengthen the global microchip crisis that has slowed production industrywide. More than two-thirds of the global supply of neon gas, essential to the production of microchips, comes from Ukraine, according to AutoForecast Solutions.

The chip shortage continues to improve, Barra said, but it will likely extend into next year.

Despite commodity headwinds, Barra believes GM will be able to maintain its promised EV prices, such as $30,000 to start for an electric Chevrolet Equinox.

GM plans to roll out 30 EVs globally through 2025. The automaker is developing proprietary Ultium battery cells with LG Energy Solution and has begun to build a supply chain to source the essential materials for EVs and batteries.

"Some of our arrangements are longer-term, so we're going to work to hold those prices and keep improving the whole process so we can serve the customer at an affordable level," she said.