Glencore’s Glasenberg warns automakers of China cobalt control

Ivan Glasenberg, CEO, Glencore

GLENCORE CEO, Ivan Glasenberg, warned automakers that allowing China to control the world’s supply of cobalt would make it difficult for electric vehicles (EVs) to be manufactured in Europe.

Citing Glasenberg, who was speaking at the FT Commodities Global Summit in Lausanne, Switzerland, Reuters said Glencore would continue to sell cobalt to China nonetheless.

“If cobalt falls into the hands of the Chinese, yeah you won’t see EVs being produced in Europe etc. They are waking up too late … I think it’s because the car industry has never had a supply chain problem before,” said Glasenberg.

More than 60% of global cobalt production comes from the DRC. Glencore, the world’s biggest producer, agreed last week to sell a third of its output to China’s GEM. GEM and its subsidiaries will buy 13,800 tonnes of cobalt from Glencore this year, 18,000 tonnes next year and 21,000 tonnes in 2020, said Reuters.

A byproduct of copper and nickel smelting, cobalt extends the life of rechargeable lithium-ion batteries, which automakers typically guarantee for eight to 10 years, said Reuters.