Apple is negotiating the direct purchase of cobalt from mining companies, since it is a key component of lithium-ion batteries. The manufacturer of smartphones is concerned about the possible deficit of metal due to electric vehicles using similar batteries. This is reported by Bloomberg referring to the sources familiar with the situation.
According to the interlocutors of the publication, the company is trying to conclude contracts for the direct supply of several thousand tons of cobalt annually for five years or longer. Due to the fact that this metal is used in the production of batteries for iPhones and iPads, Apple is among the four largest consumers of metal.
As noted by Bloomberg, Tim Cook’s company is afraid of a deficit that may arise due to the growing market of electric vehicles. While for smartphones you need about 8 grams of metal, batteries in cars are required thousands of times more. In addition to Apple, automakers such as BMW and Volkswagen are looking for opportunities to contract for long-term direct supplies. Earlier the company Tim Cook was not interested in buying metal and left this issue to the battery manufacturers.