Multinational resource group Glencore will supply Chinese company, the GEM Group, with cobalt hydroxide (cobalt) for at least the next five years.
The two companies recently signed a long-term strategic partnership according to which Glencore will provide a minimum of 61 200 tonnes (t) of cobalt for GEM between 2020 and 2024. According to Xu Kaihua, chairman of the GEM Group, the agreement represents a major cornerstone in GEM’s cobalt sourcing strategy as it will support the company’s continued contribution to the Chinese New Energy Market.
“In an ever-changing and fast evolving cobalt environment, GEM and Glencore have managed to maintain a very strong working relationship. 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,” says Xu.
He adds that 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.
According to Nico Paraskevas, head of marketing, copper & cobalt at Glencore the long-term partnership provides Glencore with a stable outlet for a significant portion of its expected future cobalt hydroxide production.