- The world's automotive industry is "waking up too late" to the fact that China will hold most of the world’s supply of cobalt, a key metal for electric vehicle batteries, says Glencore (LON:GLEN) (OTCPK:GLCNF, OTCPK:GLNCY) CEO Ivan Glasenberg.
- “If cobalt falls into the hands of the Chinese, you won’t see EVs being produced in Europe etc. They are waking up too late," Glasenberg said today at the Financial Times Commodities Global Summit. "I think it’s because the car industry has never had a supply chain problem before.”
- The CEO said he nevertheless could sell cobalt mines in the Democratic Republic of Congo - home to more than 60% of the world's cobalt production - to China if the price is right; Glencore, the world’s biggest producer of the metal, agreed last week to sell a third of its output to China’s GEM.
- Expectations of supply shortages have sparked a rally that has lifted cobalt prices to ~$39/lb. from near $10 in January 2016.
- Potentially relevant tickers include CARZ, GM, F, TSLA, FCAU, HMC, TM, OTCPK:NSANY, OTCPK:MZDAY, OTC:MMTOY, OTCPK:HYMLF, OTCPK:DDAIF, OTCPK:BMWYY, OTCPK:VLKAF, OTCPK:VLKAY, OTCPK:AUDVF, OTCPK:VOLVY, OTCPK:PEUGF, OTCPK:RNLSY
- Now read: Why Not Ford?
Original article