File Photo: The logo of commodities trader Glencore is pictured in front of the company's headquarters in the Swiss town of Baar November 20, 2012. REUTERS/Arnd Wiegmann

Baar, Switzerland:

“We are pleased to extend our partnership with Samsung SDI by entering into this long-term cobalt supply agreement. 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.”

Nico Paraskevas

Head of Copper & Cobalt Marketing

Glencore

Glencore on Monday signed a five year agreement with Samsung SDI for the supply of cobalt hydroxide. Under the terms of this supply contract, Glencore will provide up to 21,000 tonnes of cobalt contained in cobalt hydroxide between 2020 and 2024. The cobalt will be sourced from  Glencore’s industrial mining operations located in the DRC. Glencore and Samsung SDI are committed to ensuring the ethical and responsible production and procurement of cobalt.

Both parties agreed that Glencore’s DRC operations will be independently audited each year against the “Cobalt Refinery Supply Chain Due Diligence Standard”. This standard is defined by the Responsible Mining Initiative (RMI).

Nico Paraskevas, Head of Copper & Cobalt Marketing, Glencore, commented:
“We are pleased to extend our partnership with Samsung SDI by entering into this long-term cobalt supply agreement. 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”.

Glencore is one of the world’s leading producers of cobalt – a metal in rising demand for its use in batteries for electric vehicles and portable electronics.  The company produce cobalt mainly as a by-product of copper mining in the Democratic Republic of Congo (DRC), but also as a by-product of nickel mining in Australia and Canada. It is also one of the largest recyclers and processors of cobalt-bearing materials, such as used batteries ­– helping secure the supply of the metal at a time of increasing demand.

Cobalt is set to become one of the most important commodities in delivering the electric vehicle revolution – thanks to rising demand for the metal in the batteries that power them.
It is also used as a super alloy in aircraft engines, and in cemented carbides, which are often used as hard cutting surfaces or drill bits.

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