Glencore in talks to sell cobalt to China’s GEM — but price is a sticking point
London/Beijing — Glencore is in talks to sell about a quarter of its cobalt output in a one-year deal to Chinese firm GEM, but price is a sticking point as Glencore and other major producers are now able to exert more influence in negotiations, sources said. Cobalt has increasingly come under the spotlight over the last year as vehicle makers lay out plans for massive investments in electric vehicles (EVs), where demand is accelerating due to governments around the world moving to cut noxious emissions from carbon-based fuels. A by-product of copper and nickel smelting, cobalt extends the life of rechargeable lithium-ion batteries, which vehicle makers typically guarantee for eight to 10 years. Expectations of supply shortages have fueled a rally that has taken prices to about $78/kg, from close to $20 in January 2016 and to their highest since July 2008, before the financial crisis started. One source close to the matter said GEM had not yet signed a contract for this year with Gle...
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