Glencore reported on p33 of its half-yearly results that it is suspending its cobalt mining in the DR Congo. It noted that, “Mutanda’s economic viability has deteriorated since the update provided at the 2018 Results presentation in February 2019”
Note that Mutanda provided 25kt of cobalt, a vital ingredient in making batteries for electric vehicles (EV). In Darton Commodities ‘2018-2019 Cobalt Market Review,’ it forecast total global cobalt supply of 140kt in 2020 vs. total global demand of 132kt. Knocking out Mutanda will push the market into 19kt deficit.
For a company like Tesla that is trying to ramp volumes at lower/discounted prices, higher raw input prices will only make life harder in making sustainable profits.
How lucky we are that Bill Shorten never got his 50% EV sales by 2030 plan into effect.