An attempt by one of the world’s biggest carmakers to secure long-term supplies of cobalt for its push into electric vehicles has been shunned by leading producers of the metal.
Volkswagen issued a tender last month seeking a minimum of five years of supply at a fixed price, according to people familiar with the process, but struggled to find any takers.
The carmaker put off miners by suggesting a price that was well below current market prices, which have jumped by more than 80 per cent this year, the people said. “They’re being arrogant because they’re automotive and they’re used to doing it,” one trader said. “They completely misjudged the contents of the tender. There’s no point negotiating — it’s not even a discussion point.” Continue Reading →