British-Swiss multinational Glencore has signed a five-year deal with Chinese company GEM to supply a minimum of 61,200 tonnes of cobalt per year starting from 2020. The fee for the deal was not disclosed by either party.
Glencore head of marketing, copper & cobalt Nico Paraskevas said: “The extension of our long-established partnership with GEM further endorses Glencore’s important role in supplying the materials that enable the energy and mobility transition.
“Furthermore, this long term partnership provides Glencore with a stable outlet for a significant portion of its expected future Cobalt Hydroxide production.”
GEM chairman Xu Kaihua added: “GEM is very pleased to announce this long-term strategic co-operation with Glencore. This agreement represents a major cornerstone in GEM’s cobalt sourcing strategy as it will support GEM’s continued contribution to the Chinese New Energy Market.
“By securing a key battery raw material, GEM clearly demonstrates its ability to implement and deliver its vision for an electrified, carbon-free transportation system.
“GEM will continue focusing on the development and the manufacturing of high-quality sustainable cobalt products to meet the fast-growing demand for cobalt-containing battery products. We truly appreciate Glencore’s long term approach and its support in establishing a stable and sustainable cobalt supply chain.”
Following the announcement of the deal, Glencore’s stock price fell from 226.65p to 224.60p on the London stock exchange, giving the company a market cap of £30.27bn. This has continued a recent downward trend for Glencore since April 2019, as its share price peaked at 340.30p on 17 April.
