Katanga Mining Ltd Ord KATFF

RE:$TSLA *TESLA IN TALKS TO BUY COBALT FROM GLENCORE FOR CHINA

[Sogosohubidu201]

https://www.ft.com/content/48fac39e-37a0-11ea-a6d3-9a26f8c3cba4?segmentId=98583035-ac35-a0ba-ed44-378e53f8caec



Tesla in talks to buy cobalt from Glencore Electric carmaker seeks to secure supplies of battery metal for Shanghai factory Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Save Henry Sanderson in London YESTERDAY Print this page10 Tesla is in talks to buy supplies of the battery metal cobalt from Glencore for its new factory in Shanghai, according to people familiar with the matter. The electric carmaker has held recent discussions with the Switzerland-based miner over a long-term supply deal though no final agreement has been signed, they said. The deal is the latest sign that carmakers and battery producers are increasingly keen to secure long-term supplies of cobalt, a metal used in lithium-ion batteries that is mostly mined in the Democratic Republic of Congo. Tesla is looking to secure supplies of the metal for its Shanghai factory, which opened this month after a year of construction, the person said. The plant, which will produce the mass market Model 3 car, will use batteries from Korean producer LG Chem initially. Glencore is the world’s largest producer of cobalt from its two mines in the DRC as well as its nickel mines in Australia and Canada. Last month Glencore signed a six-year agreement with Korean battery maker SK Innovation to supply around 30,000 tonnes of cobalt hydroxide for the next five years. Last year Glencore also signed a deal with BMW to provide the carmaker cobalt from its Murrin Murrin mine in Australia. Tesla did not immediately respond to a request for comment. A Glencore spokesman declined to comment.