Glencore Chief warns Carmakers of Cobalt Supply Crunch...
GLENCORE Corporation Chief Ivan Glasenberg says western groups risk being left behind by their Chinese rivals Over 60% of the world’s cobalt comes from the DRC, where it is
GLENCORE Corporation Chief Ivan Glasenberg says western groups risk being left behind by their Chinese rivals Over 60% of the world’s cobalt comes from the DRC, where it is mined by Glencore. Western carmakers have yet to wake up to the limited supply of cobalt and risk being left behind by their Chinese rivals, according to the chief executive of the world’s biggest producer of the battery metal. The warning by Ivan Glasenberg, chief executive of Glencore, will increase the pressure on carmakers such as Volkswagen and BMW, which have pledged to spend billions rolling out new electric car fleets.
Both carmakers have said they are looking to sign long-term supply agreements for cobalt, a critical battery metal that is abundant in the Democratic Republic of Congo, one of the poorest countries in the world.
“The motor car industry hasn’t woken up to the fact, I don’t think, how important cobalt is and how ‘tight’ cobalt is,” Mr. Glasenberg told the FT Commodities Global Summit in Lausanne. Over 60 per cent of the world’s cobalt comes from the DRC, where it is mined by Glencore, China Molybdenum and some other smaller operators. Switzerland-based Glencore aims to increase its production of cobalt from the country by more than 67 per cent over the next three years.
But worries over this availability have increased after Glencore signed an agreement with a Chinese battery materials maker this year to supply around a third of its cobalt production over the next three years.