Apple May Start Buying Cobalt Directly From Miners
The move would put Apple in competition with car and battery makers alike.
It’s been reported that Apple is poised to purchase long-term supplies of cobalt, used to produce iPhone batteries, directly from the source, miners. The giant tech company has plans to secure contracts that will allow them to buy several thousand metric tons of cobalt for five or more years. The price of cobalt has increased exponentially due to the growth of electric vehicles, which are powered by lithium-ion batteries that’s created with the use of cobalt.
If the rumors are true, Apple will indirectly be in competition with car manufacturers as well as battery makers, as they will hold a large portion of the raw material. Apple has locked resources before, securing a supply agreement for NAND flash drives in 2005. It was included in iPod and iPhones and it eventually led to a market shortage of the material.
In related news, poor iPhone X sales have reduced Samsung OLED production.
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