Glencore signs long-term agreement for supply of cobalt to Umicore

29 May 2019 (Last Updated May 29th, 2019 18:28)

Glencore has entered into a long-term revolving agreement for the supply of cobalt hydroxide to Umicore’s battery materials value chain.

Glencore has entered into a long-term revolving agreement for the supply of cobalt hydroxide to Umicore’s battery materials value chain.

The cobalt will be drawn from Glencore’s industrial mining operations, KCC and Mutanda, both of which are located in the Democratic Republic of Congo (DRC).

Umicore has reviewed each operation as completely compliant with its sustainable procurement framework for cobalt.

This framework excludes cobalt mined at artisanal and small-scale operations from its supply chain, as well as products derived from any kind of child labour.

When the ongoing acquisition process is complete, the cobalt units will be shipped to Umicore’s cobalt refineries across the world, including a facility in Finland.

This agreement enables Umicore to secure the supply of cobalt its longer-term requirements in order to cater to its expanding global battery materials value chain.

Furthermore, the agreement offers long-term market access to Glencore for its cobalt raw materials, just in line with growing demand for Umicore’s cathode materials.

“The agreement reconfirms our strong commitment to promote a sustainable battery materials value chain globally.”

Umicore CEO Marc Grynberg said: “Our partnership with Glencore and the acquisition of the Kokkola refinery which has just been announced demonstrate our ability to execute our growth strategy for cathode materials with consistency.

“The agreement also reconfirms our strong commitment to promote a sustainable battery materials value chain globally. I am convinced that our battery cell and automotive customers will value our commitment to support their growth.”

Glencore head of marketing for copper and cobalt Nico Paraskevas said: “We are pleased to enter into this long-term partnership with Umicore in the fast growing electric vehicle market which further endorses Glencore’s important role in supplying the materials that enable the energy and mobility transition.”