South Korea's SK Innovation on Dec. 4 signed a 6-year contract with the world’s largest cobalt producer Glencore of Switzerland to secure up to 30,000 tons of cobalt for producing batteries for EV, according to the company.
The contract will be effective between 2020 and 2025. The amount of cobalt SK Innovation receives is enough to produce up to 3 million EVs.
“Our supply chain can now effectively meet the growing needs of our clients in the battery market,” said SK Innovation spokesman Lim Soo-gil. “We also plan on doing our best to ensure that the cobalt is produced in responsible manner so as to help maximize the social value of the global battery industry.”
Industry watchers predict the global EV battery market to grow an annual 25% to reach 182 trillion won in 2025, meaning the demand will surge for cobalt, one of its key ingredients. In 2020, the global EV market will need cobalt of up to 32,000 tons. In 2025, this will shoot up to 92,000 tons.
Based on the Cobalt Refinery Supply Chain Due Diligence Standards issued by the Responsible Minerals Initiative, a global mineral association, both SK Innovation and Glencore have agreed to receive audits by a third party every year throughout the contract period.
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