GEM and Glencore in long-term cobalt partnership

2019-10-09T11:11:34+00:00 October 8th, 2019|News|

Multinational resource group Glencore will supply Chinese company, the GEM Group, with cobalt hydroxide (cobalt) for at least the next five years.

Glencore will supply Chinese company GEM with cobalt for at least the next five years.  Image credit: elements.com

Glencore will supply Chinese company GEM with cobalt for at least the next five years.  Image credit: elements.com

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.