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SK Innovation and Glencore ink Long Term Cobalt Supply Deal

Metal News - Published on Fri, 06 Dec 2019

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SK Innovation has signed a six year agreement with Glencore for up to 30,000 tonnes of cobalt contained in hydroxide between 2020 and 2025. Glencore and SK Innovation are committed to ensuring ethical and responsible production and procurement of cobalt. There are continuous allegations of human rights abuses linked to cobalt production, and SK Innovation is voluntarily focusing on ethical and responsible sourcing. The cobalt in this supply contract will be sourced from Glencore’s industrial mining operations located in the DRC. Both parties agree that the 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.

Amid growing battery demand, SK Innovation will do its utmost to ensure stable raw material supply while fulfilling its ethical responsibilities.”

The electric vehicle battery market is growing fast and the total market size will be USD 150 billion in 2025, larger than the semiconductor market. Accordingly, cobalt demand will keep increasing. We assume global cobalt demand for EV batteries will be 32kt in 2020 and 92kt in 2025. With this contract, SK Innovation can produce batteries for 3 million EVs.

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Posted By : Rabi Wangkhem on Fri, 06 Dec 2019
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