Glencore has extended its Chinese cobalt contract
(Kitco News) - Glencore (GLEN:LSE) will supply cobalt to Chinese battery manufacturer Green Eco-manufacture Hi-tech (GEM) for another additional five years after expanding their partnership. Glencore are the worlds largest cobalt producer and this is another sign of its grip in the market.
The new agreement will see the firm supply GEM with an estimated 150,000 tonnes of cobalt contained in hydroxide between 2020 and 2029.
Glencore has many cobalt assets across the world. Most notably Australia, Africa, Europe and North America, including the Murrin Murrin nickel-cobalt operation in Western Australia.
Glencore head of marketing, copper and cobalt Nico Paraskevas said “Long term security of cobalt supply and cobalt demand visibility are critical to prevent supply shortages that could impede the energy transition and, ultimately, the world’s ability to meet climate change targets,”. He then added “As the cobalt supply chain matures with greater emphasis on long term partnerships, this contract is just one example of Glencore and its customers working together towards the adoption of industry leading standards on responsible sourcing and environmental and social corporate governance.”
The share price has recently accelerated outside of the technical channel. The price is now heading toward the yearly high marked in black. This is a significant bull trend and as the battery mineral market grows Glencore are in a great place to exploit the boom.