LONDON (Reuters) – Glencore (GLEN.L) has increased production of the metals used to make electric car batteries faster than its major mining rivals, according to an industry-wide analysis that shows the scale of a strategy that has big prospective risks and rewards.
The Anglo-Swiss company’s output of cobalt and copper roughly doubled in the five years to 2016, while its production of nickel quadrupled, the research compiled for Reuters by S&P Global Market Intelligence shows. (Graphic: Glencore’s mining production – tmsnrt.rs/2zOQTgo)
Electric vehicle metals account for roughly 50 percent of Glencore’s core profit, more than double the proportion of its major listed competitors – BHP (BLT.L) (BHP.AX), Rio Tinto (RIO.L) (RIO.AX) and Anglo American (AAL.L).
The analysis, based on companies’ reports, supports Glencore’s assertion it is well positioned to capitalize on an anticipated surge in demand for electric cars in the coming decade.
However the drive also holds potential perils; most of the production has been added through acquisitions, and Glencore has racked up more debt than its competitors, according to S&P Global Market Intelligence.
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