👀Japanese Auto/Battery Firms Come Looking For Our Cobalt👀 Auto, battery firms team up to procure stable supply of cobalt
A consortium of leading Japanese automakers and battery manufacturers will establish a joint organization for procuring cobalt (see below), aiming to ensure a stable supply of the rare metal that is indispensable for electric vehicle (EV) batteries, The Yomiuri Shimbun has learned.
With the help of the government, the consortium also plans to begin developing cobalt mines, according to sources, hoping to counter Chinese moves to gain control of cobalt interests in various parts of the world.
More than five companies will likely participate in the new joint venture, which is expected to be established as early as within fiscal 2018. Although trading firms and resource development companies commonly team up to procure natural resources, it is rare for different manufacturers to join hands to procure rare metals.
The government expects the new entity will help the country secure a stable supply of natural resources. It thus plans to offer support for the development of mines and other initiatives being considered by the joint venture, through such means as offering financing from the Japan Bank For International Cooperation and the Japan Oil, Gas and Metals National Corporation.
Cobalt is a major raw material for EV batteries, along with lithium and nickel. The growing number of EVs around the world is spurring a rapid increase in demand for cobalt, with global consumption of the rare metal expected to reach about 450,000 tons in 2030, or about four times the current amount.
Because a large percentage of cobalt is concentrated in a few countries such as the Democratic Republic of the Congo, demand for it is expected to outstrip supply by around 2020. The Japanese consortium hopes to enhance its bargaining power with producer nations through government-backed joint procurement, and to prepare for future competition over natural resources.
China has worked to develop EVs and secure cobalt and other rare metals as part of measures to tackle environmental pollution. Chinese companies account for more than 30 percent of the world’s cobalt production, centered mainly in the Democratic Republic of the Congo, while Japanese companies account for only about 4 percent.
If the cobalt market continues to be an oligopsony dominated by Chinese companies, the ability of Japanese-affiliated manufacturers to procure cobalt will be affected. Given such concerns, the Japanese government and the private sector are poised to take steps to change the situation.
Cobalt
A silver-gray metal that is difficult to oxidize. It is known as a raw material for lithium-ion batteries used in electric vehicles. Japan imports about 15,000 tons a year. The global production volume in 2016 was about 120,000 tons, more than half of which was mined in the central African country of the Democratic Republic of the Congo.
https://the-japan-news.com/news/article/0004606798