• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 37 mins Coal Boom in Asia is Real and a Long Trend
  • 39 mins The Plastics Problem
  • 3 hours Hydrogen FTW... Some Day
  • 13 hours China's President Xi To Visit North Korea This Week
  • 17 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 5 hours GM Considering Electric Hummer
  • 1 hour As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 15 hours Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 9 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 19 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 19 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 17 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 3 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 12 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
Climate Change Could Trigger Global Financial Crisis

Climate Change Could Trigger Global Financial Crisis

A top U.S. financial regulator…

A Watershed Moment For Gazprom

A Watershed Moment For Gazprom

The Kremlin’s push for reform…

VW Fails To Secure Critical Commodity For EVs

EV

In one of the clearest signs of a tight cobalt market, Volkswagen has failed to secure a long-term supply of cobalt used in electrical vehicle batteries.

The German carmaker last month put out a tender seeking a five-year supply of the strategic metal at a fixed price. But people familiar with the deal said the offer was well below market prices. Cobalt has more than doubled in price from a year ago, when it was trading around $12 a pound, to its current $27.10 a pound as of last Thursday. (see chart below).

(Click to enlarge)

"They're being arrogant because they're automotive and they're used to doing it," said a cobalt trader quoted Sunday in the Financial Times. "They completely misjudged the contents of the tender. There's no point negotiating – it's not even a discussion point."

Over 60 percent of cobalt is mined in the Democratic Republic of the Congo – raising concerns about stability of supply. The big producers are Glencore (LON:GLEN) and China Molybdenum, along with thousands of  artisinal miners who mine the metal and send it to China. Amnesty International has said the process involves child labour.

According to the FT, the VW tender requires the supply of 80,000 to 130,000 tonnes of cobalt, in a market whose total supply is just over 100,000 tonnes a year.

In July of this year Glencore signed a deal to sell up to 20,000 tonnes of cobalt to Chinese battery maker Contemporary Amperex Technology Co Ltd. (CATL). VW would buy the batteries from CATL, in an effort to lock in supply of the metal used in lithium-ion EV batteries. The same month Chinese-owned Volvo said all its car models launched after 2019 would be electric or hybrid. Tesla and BMW are also said to be looking for cobalt supplies, though no tenders have been issued, the FT said.

By Mining.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News