Volkswagen eyeing cobalt contracts to accelerate electric vehicle swerve
Cobalt suppliers are working on potential long-term contracts with Volkswagen as the car manufacturer looks to pivot towards electric vehicles, boosting potential demand for a metal that is often a key component in lithium-ion batteries.
The German automative giant, attempting to rally back from its 'dieselgate' scandal by accelerating its move into greener vehicles, has begun to try and secure long-term supplies of cobalt, a Reuters report indicated.
Sources in the cobalt industry told the newswire that VW is putting up for tender 10-year supplying agreements for the metal starting in 2019.
Cobalt, which closed in London at $59 per tonne on Friday, has been pushed recent months been trading at its highest levels since 2009, mirroring similar increases in demand for lithium and nickel.
London-listed mining companies with potential access to cobalt are led by Glencore, which produced more than 28,000 tonnes last year, though smaller miners with producing or exploration assets containing cobalt include Cadence Minerals, Horizonte Minerals, MetalNRG, Anglo Pacific Group, IronRidge Resources, Strategic Minerals, Jangada Mines, Amur Minerals, Alba Minerals, Aura Energy and Bluejay Mining.