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.
The Jewel of the Crypto Winter: Digital Tokens Backed by Viable Products
The crypto winter that's taken over the market in the last few months has been brutal. Besides tanking prices, there...
What’s New in the Neo-banking Scene in Switzerland?
Swiss neo-banking is becoming increasingly similar to foreign competitors in their product offerings and features. Many are now mimicking the...
Investing Apps: Why Are Retail Investors Using Them?
Investment apps have become increasingly popular among retail investors. Notably, the popularity of investment apps has been triggered by the...
ESG: Tech Companies Must Also Become Responsible
ESG has become vital for many companies in traditional industries like mining. But what are tech companies doing to keep...
Credit for European Companies Cheaper Than a Year Ago Despite Rising Euribor
While market interest rates have seen significant increases, new company financing rates remain lower than they were a year ago....