Tesla is looking to buy supplies of the battery metal cobalt from Glencore for its new factory in Shanghai. In a released statement, the electric carmaker has held recent discussions with the Switzerland-based miner over a long-term supply deal though no final agreement has been signed.
According to media reports, the deal is the latest sign that carmakers and battery producers are increasingly keen to secure long-term supplies of cobalt, a metal used in lithium-ion batteries that is mostly mined in the Democratic Republic of Congo (DRC).
Tesla is looking to secure supplies of the metal for its Shanghai factory, which opened this month after a year of construction. The plant, which will produce the mass market Model 3 car, will use batteries from Korean producer LG Chem initially.
Glencore is the world’s largest producer of cobalt from its two mines in the DRC as well as its nickel mines in Australia and Canada. Over December 2019, the mining firm signed a six-year agreement with Korean battery maker SK Innovation to supply around 30,000 tonnes of cobalt hydroxide for the next five years.
This is in addition to another deal signed with BMW to provide the carmaker cobalt from its Murrin Murrin mine in Australia.
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