Apple is negotiating with cobalt miners to buy the mineral directly from them, according to a Bloomberg report, quoting people familiar with the matter.
Cobalt is a primary ingredient in lithium-ion batteries used in Apple’s devices like the iPhone, iPad and MacBooks, and according to the Bloomberg report, the tech giant is one of the world’s biggest end users of cobalt.
Apple, however, left the task of buying the mineral to companies that make the batteries.
Apple wants enough cobalt supply
Bloomberg said Apple wants to “ensure it will have enough of the key battery ingredient amid industry fears of a shortage driven by the electric vehicle boom.”
Bloomberg’s sources, who refused to be identified because of the confidential nature of the discussions about Apple’s long-term purchase of cobalt, said the company is looking at securing deals “for several thousand metric tons of the mineral a year for five years or longer.”
One of the sources said the negotiations started more than a year ago, but another source revealed that Apple “may end up deciding not to go ahead with any deal.”
Fortune reported that one reason why the talks might fall apart is that “with cobalt demand soaring and supply constrained, a shortage of cobalt would be a major risk to Apple’s business.”
Meanwhile, Bloomberg said an Apple spokesman declined to comment about its report.
The news outlet, however, recalled that Glencore Plc Chief Executive Ivan Glasenberg mentioned late last year that Apple was among several companies Glencore was talking to about cobalt.
If the direct purchase of cobalt pushes through, Apple faces stiff competition from carmakers like BMW and Volkswagen and battery producers in securing cobalt supplies.
DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.
UrbanFisio Launches Virtual Assistant to Surpass €1 Million by 2021
The company UrbanFisio had a turnover of $1.03 million (€878,000) in 2020 and expects to reach $1.53 million (€1.3 million)...
How Rating Discrepancies Undermine ESG
According to some experts, companies with higher sustainability scores have better risk management and compliance standards, leading to fewer extreme...
Elon Musk Said Tesla Will Accept Bitcoin Again
After Tesla accepted Bitcoin as a means of payment in March 2021, the company revised the decision again just two...
Trusters’s Real Estate Crowdfunding Fund Raised €7.3 Million in Six Months
In the first half of the year, the real estate lending crowdfunding platform Trusters raised $8.6 million (€7.3 million), almost...
Nowture Enters the Capital of the Spanish Biotech Company Libera Bio
Nowture is a comprehensive ecosystem that invests in and offers a global model of support services for transformative companies in...
Featured5 days ago
Markets May Have Hit a Temporary Top that Could Continue into September
Business5 days ago
Extended Reality Investment Alert: XRApplied (XRA) Conditionally Approved to List on CSE
Business5 days ago
Why T-Bond Yields Increased in the Past Three Decades
Crypto4 days ago
Canada Continues to Embrace Cryptocurrencies