Glencore to supply cobalt to Tesla’s Shanghai and Berlin Gigafactories
Commodities trader and miner Glencore and American electric
vehicle and clean energy company Tesla have signed a deal, pursuant to which
Tesla will buy cobalt from Glencore.
The electric vehicle firm plans to use Glencore’s cobalt in
its Shanghai and Berlin Gigafactories, reported The Financial Times.
The cobalt will be supplied from the Democratic Republic of
Congo (DRC), where the commodities miner has been operating a copper mine in
the Katanga region since 2008.
In January this year, BloombergNEF analyst Kwasi Ampofo said
that Tesla’s China plant is expected to manufacture 1,000 to 3,000 cars per
week. This would translate to about 1,200 tonnes (t) of cobalt demand annually
at peak capacity.
The contract will help Tesla increase cobalt supply for its
new plants in China and Germany, said Bloomberg citing a person familiar with
the matter.
The deal will see Glencore supplying over 6,000t of cobalt
per annum for lithium-ion (Li-ion) batteries used in electric cars.
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