Tesla Inc., Apple Inc. and Volkswagen AG are interested in cobalt supply for power storage solutions for mobile devices and electric and hybrid vehicles, Glencore Plc said on Tuesday. The mining titan vowed to drive up production from 27,000 tons per year to 63,000 through 2020. The Financial Times noted the volume would be worth $4.7 billion at today's prices, after the value of the material grew 120% in the market from the start of the year.
The article adds investors are holding on to their cobalt, speculating on more profit. Glencore's chief executive Ivan Glasenberg warned demand for the metal is outpacing production, including advanced alloys, and asserted "an alternative" would become necessary.
The company told stockholders it is raising its capital expenditure guidance for the following three years to $4.5 billion per annum, compared to $4 billion from an update published one year before.
