Glencore has signed a five-year agreement for the supply of cobalt hydroxide for use in lithium-ion batteries. Under the terms of the new supply contract, Glencore will provide up to 21,000 tonnes of cobalt contained in cobalt hydroxide between 2020 and 2024 to Samsung SDI .
Glencore produced 42.2 kilotonnes of cobalt in 2018, mainly as a by-product of copper mining.
The cobalt will be sourced from Glencore’s Katanga and Mutanda operations which are located in the Democratic Republic of the Congo (DRC).
Glencore and Samsung SDI state that they are committed to ensuring the ethical and responsible production and procurement of cobalt.
Both parties agree that Glencore’s DRC operations will be independently audited each year against the ‘Cobalt Refinery Supply Chain Due Diligence Standard’, which is defined by the Responsible Mining Initiative.
“We are pleased to extend our partnership with Samsung SDI by entering into this long-term cobalt supply agreement,” said Nico Paraskevas, Head of Copper & Cobalt Marketing, Glencore, on Monday.
“This demonstrates a further continuation of Glencore’s cobalt hydroxide marketing strategy to secure long term supply agreements with key players in the lithium-ion battery supply chain. This also illustrates Glencore’s important role in supplying the materials that enable the energy and mobility transition and Glencore’s commitment to responsible production.”