Apple Reportedly in Talks to Purchase Cobalt for Batteries Directly From Miners in Case Shortage Appears
Apple’s business foresight will always give it an advantage in the industry, with the company reportedly being in talks in purchasing Cobalt directly from miners. Lots of industries require Cobalt, which is used in making Lithium Ion batteries and its shortage could mean that the competition would have to pay more to get this crucial element.
Cobalt Will Eventually Be Used in Abundance for Powering Electric Vehicles - Apple Will Secure a Tidy Supply if Talks With Miners Go as Planned
A new report from Bloomberg details that Apple is looking to secure a deal that is set to last for at least five years. Cobalt is used in making batteries that are incorporated in a wide-range of Apple devices, with the primary bread and butter of the company being iPhones. If the deal does go through, it will give the California-based giant two advantages.
- If there is a shortage, Apple will have nothing to fear because it would have already secured a hefty supply of the element in the first place. Dealing directly with miners means that the company will be prioritized supply of these components, but that does not mean the company is immune to component shortages, as seen with the iPhone X launch.
- Apple could guarantee compliance with its supplier standards. The company has been reported to have purchased Cobalt for batteries, with child labor being employed to do the mining bits. Apple might do its best to keep a check on these suppliers, but if these components go from supplier to supplier, it would become very difficult to keep a trace of all of them.
Bloomberg has reported that electric vehicles are going to be used heavily in 2030, and that only means that mining Cobalt is going to be taking place at a rapid pace. This could eventually mean shortage in the component industry, which will shoot up prices, forcing phone manufacturers to pay a premium to get a hold of this.
Apple is attempting to stay ahead of the competition and if it can keep an eye on what sort of labor is being employed, that is also a win-win situation in terms of human rights.
News Source: Bloomberg