Apple tries to secure cobalt stocks for iPhone battery production

Apple is said to be in direct negotiations with cobalt mining companies to secure long-term supplies of the transition metal. Cobalt is an important element of batteries.

Apple would like to sign agreements with the mining companies for the supply of millions of kilograms of cobalt, for a period of five years. Bloomberg writes that on the basis of sources who are said to be familiar with the negotiations. The CEO of the Swiss Glencore PLC, which mines and trades commodities, already said a year ago that he was in talks with Apple.

Until now, Apple left negotiations with the mining industry to battery manufacturers. Lithium-ion batteries contain cobalt, which is mainly mined in Congo. About 42 percent of global cobalt production goes to battery manufacturers. With the advance of electric cars, more and more automakers are trying to claim their share, while demand from smartphone and tablet manufacturers remains high.

This has led to significant price increases for the transition metal, especially since car batteries require much more cobalt than smartphone batteries. The companies are probably trying to ensure that the supply will be for a fixed price for a few years, so as not to be confronted with increasing costs and limited supply. At the same time, battery companies are trying to reduce their dependence on cobalt by reducing the amount of material needed or exploring the production of cobalt-free batteries.

According to Bloomberg, BMW, Volkswagen and Samsung are also trying to negotiate SDI deals with mining companies to continue sourcing cobalt. It is not known whether Tesla is also in negotiations for the supply of cobalt, but earlier this month Reuters wrote that Tesla is in talks with the Chilean mining company SQM for the long-term supply of lithium for its batteries.