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Glencore to sell cobalt to Chinese firm, securing battery supplies for VW

Published 07/06/2017, 12:31 PM
© Reuters.  Glencore to sell cobalt to Chinese firm, securing battery supplies for VW
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  • Glencore (LON:GLEN) (OTCPK:GLCNF, OTCPK:GLNCY) has signed a contract to sell up to 20K metric tons of cobalt products to a Chinese firm, a move that also will help Volkswagen (DE:VOWG_p) (OTCPK:VLKAF, OTCPK:VLKAY) secure car batteries for its shift to electric vehicles, Reuters reports.
  • The deal to supply cobalt hydroxide and alloys was struck in October, when cobalt metal prices were ~$28.5K/metric ton on the LME, according to the report; the price has since more than doubled to above $58K/ton.
  • "It was a triangular deal" among Glencore, VW and Chinese battery maker Contemporary Amperex Technology Co. Ltd., a cobalt trading source tells Reuters. "CATL on their own weren't willing to commit to such a large quantity so VW said they would buy the batteries" from CATL.
  • Now read: Tesla (NASDAQ:TSLA): A Solid Investment Or A Gamble


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