Tesla will buy cobalt from Glencore for use in two new car plants in a deepening of ties between Elon Musk’s electric car maker and the Swiss mining group.
Glencore will supply Tesla’s new Shanghai Gigafactory and its planned Berlin facility with the metal used in lithium-ion batteries, according to people familiar with the matter.
The deal, which increases Tesla’s reliance on supplies from the Democratic Republic of Congo, is a boost for Glencore’s cobalt business after a two-thirds slide in the metal’s price over the past two years to about $30,000 a tonne.
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