SK Innovation and Glencore sign six-year cobalt supply deal
Global
mining giant Glencore has signed a deal to supply Korean battery-maker SK
Innovation with up to 30,000 tons of cobalt contained in hydroxide between 2020
and 2025.
Glencore
expects global demand for cobalt for EV batteries to reach 92 kilotons by 2025.
The quantity of cobalt supplied under this contract will allow SK Innovation to
produce batteries for some 3 million EVs.
The
production of cobalt has been accompanied by glaring human rights concerns.
Both companies say they are committed to producing cobalt in an ethical and
responsible way. “There are continuous allegations of human rights abuses
linked to cobalt production, and SK Innovation is voluntarily focusing on
ethical and responsible sourcing,” Glencore asserts. “The cobalt in this supply
contract will be sourced from Glencore’s industrial mining operations located
in the Democratic Republic of the Congo.” Both companies have agreed that the
DRC operations will be independently audited each year against the Cobalt
Refinery Supply Chain Due Diligence Standard, a standard defined by the
Responsible Mining Initiative.
“This
newly established partnership demonstrates the continuation of Glencore’s
cobalt hydroxide marketing strategy to secure long-term supply agreements with
key players in the lithium-ion battery supply chain,” said Nico Paraskevas,
Glencore’s Head of Copper and Cobalt Marketing.
Source: Glencore
