Umicore and Glencore have entered into a long-term revolving agreement for the supply of cobalt hydroxide (cobalt) to Umicore’s battery materials value chain.
The cobalt will be sourced from Glencore’s industrial mining operations at KCC and Mutanda in the Democratic Republic of the Congo (DRC).
Umicore has assessed each operation and found them to be fully compliant with its sustainable procurement framework for cobalt, which excludes artisanally mined cobalt from its supply chain, as well as any form of child labour.
The cobalt units will be shipped to Umicore’s cobalt refineries globally, including the Kokkola refinery in Finland once the ongoing acquisition process is complete.
The agreement is intended to guarantee Umicore’s security of supply for a substantial part of its longer-term cobalt needs for its expanding global battery materials value chain. The agreement also provides Glencore long-term market access for its cobalt raw materials in line with Umicore’s growing cathode materials sales.
“Our partnership with Glencore and the acquisition of the Kokkola refinery, which has just been announced, demonstrate our ability to execute our growth strategy for cathode materials with consistency,” said Marc Grynberg, CEO of Umicore.
“The agreement also reconfirms our strong commitment to promote a sustainable battery materials value chain globally. I am convinced that our battery cell and automotive customers will value our commitment to support their growth.”
Nico Paraskevas, head of marketing, copper and cobalt, Glencore, commented: “We are pleased to enter into this long-term partnership with Umicore in the fast-growing electric vehicle market, which further endorses Glencore’s important role in supplying the materials that enable the energy and mobility transition.”