Swiss mining company Glencore has signed an agreement to supply ethically-sourced cobalt to Norway's Freyr to help them meet supply for their lithium-ion batteries.
The deal will see Glencore's Nikkelverk division supply the battery makers with 3,700 tonnes of cobalt cathodes over an undisclosed period once the company's production is back up and running.
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This comes as many companies look to remove cobalt production from the Democratic Republic of Congo (DRC) from their supply chains owing to the often extreme exploitation of the workforce there.
In addition, Glencore has purchased an equity stake in Freyr through Alussa Energy Acquisition Corp and is due to begin trading on the New York Stock Exchange in the second quarter of 2021 following a merger between the two companies.
Freyr is planning to have 40GW of battery output by 2025 to position it as one of Europe's largest cell providers.
The batteries are to be produced at Freyr's facilities at the Mo i Rana industrial complex in northern Norway.
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Nico Paraskevas, the head of copper and cobalt marketing at Glencore, said: “The finalisation of the letter of intent alongside our investment in the combined group cements our long-term partnership. We look forward to helping FREYR achieve its goal of producing batteries with the world’s lowest carbon content and contributing to our ambition of net-zero total emissions by 2050.”
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