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December 5, 2019

South Korea’s SK Innovation signs cobalt supply deal with Glencore

South Korean company SK Innovation has signed a six-year agreement with Glencore for up to 30,000t of cobalt contained in hydroxide.

South Korean company SK Innovation has signed a six-year agreement with Glencore for up to 30,000t of cobalt contained in hydroxide.

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Under the terms of the agreement, Glencore will supply cobalt between 2020 and 2025.

The deal would enable SK Innovation to produce batteries for three million electric vehicles (EVs).

Commenting on the deal, SK Innovation said: “In signing this contract with the world’s largest producer of cobalt, SK Innovation has secured supply of a metal which is both core to battery production and in short supply.

SK Innovation stands ready to produce the batteries required to meet the significant anticipated battery demand.

“Amid growing battery demand, SK Innovation will do its utmost to ensure stable raw material supply while fulfilling its ethical responsibilities.”

SK Innovation expects that global cobalt demand for EV batteries would be 32,000t in 2020 and 92,000t in 2025.

The cobalt under this supply contract will be sourced from Glencore ’s mining operations in the Democratic Republic of Congo (DRC ).

As agreed by the firms, Glencore ’s DRC operations will be independently audited each year against the ‘Cobalt Refinery Supply Chain Due Diligence Standard’ which is defined as part of the Responsible Mining Initiative (RMI).

Glencore Copper & Cobalt Marketing head Nico Paraskevas said: “This newly established partnership demonstrates the continuation of Glencore ’s cobalt hydroxide marketing strategy to secure long term supply agreements with key players in the lithium-ion battery supply chain.

“This illustrates Glencore ’s important role in supplying the materials that enable the energy and mobility transition and Glencore ’s commitment to responsible production.”

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Free Report
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2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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