Glencore and Britishvolt enter long-term supply agreement
GLENCORE and Britishvolt have signed an agreement for the
mining company to supply responsibly-sourced cobalt for the manufacture of
lithium-ion batteries.
Glencore says the long-term strategic partnership will
create long-term security and therefore de-risk the operation. According to The
Financial Times, Glencore will supply 30% of the metals required by Britishvolt
between 2024 and 2030. Glencore has also made an undisclosed investment in
Britishvolt.
Britishvolt is building a battery “gigafactory” to
manufacture low-carbon battery cells in Cambois, Northumberland, on the site of
the former Blyth Power Station coal stocking yard. The £2.6bn (US$3.6bn)
project will be Britain’s first gigafactory, according to The Financial Times.
It will be constructed in three phases of 10 GWh, with the
aim of reaching a capacity of 30 GWh by the end of 2027. At full capacity, the
facility will produce enough cells for 300,000 electric vehicle battery packs
per year.
However, The Guardian has reported that there is controversy
over Glencore’s investment in Britishvolt as there are currently multiple corruption
investigations ongoing into the mining company’s operations in the Democratic
Republic of Congo.
David Brocas, Head Cobalt Trader, Glencore, said: “Our
commitment to support our partners in meeting their requirements for essential
battery ingredients is key to underpinning long-term supply agreements. As the
mobility and energy transition accelerates, so does future demand for battery
metals such as cobalt, copper and nickel. Glencore is already a leading
producer and supplier of these metals, helping to underpin our ambition of
achieving net zero total emissions by 2050.”
Orral Nadjari, Britishvolt CEO/Founder, said: “This is a
huge step in the right direction for Britishvolt as we look to accelerate the
transition to a low carbon society. By partnering with Glencore, we are locking
in supply and de-risking the project.”
“We believe that to be a true pioneer in the battery cell
manufacturing industry, business must lead by example and ensure that its
supply chains are as ethical, low carbon and sustainable as possible.”
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