WorldWide Drilling Resource

Ensuring Cobalt Supply for the Future Compiled by Caleb Whitaker, Associate Editor WorldWide Drilling Resource ® One important metal for the production of lithium-ion batteries used in cell- phones and electric vehicles is cobalt. Quality batteries for portable devices is about finding the right mix of metals and chemicals which optimize both holding a charge and stability. Cobalt affects the time it takes to charge a battery, its en- ergy density, and stability. It is also the primary material in the cathode, which is the most expensive part of the battery. Cobalt is a byproduct of copper mining, so demand for it is limited by how much it can boost production growth, meaning global demand drives much of the world's cobalt production. If companies such as Apple Inc. can’t obtain cobalt, then they would have no more batteries to power their products. For this reason, despite cobalt’s substantial rise in price over the years, it has become an investment op- portunity. However, roughly half of cobalt's production comes from the Democratic Republic of the Congo, a country with dan- gerous mining operations and labor conditions. With supplies of the metal constrained, battery makers and other users are looking to ensure there is as stable a supply as possible. Apple is seeking to lock down it’s cobalt supplies and buy from less controversial suppliers. For the first time, the company is in talks to buy long-term supplies of cobalt directly from mines. Though Apple is one of the world’s largest end users of cobalt, it has until now left the business of buying the metal to the companies which make its batteries. The move to buy directly from the mines means Apple will find itself in competition with carmakers and battery producers, and chances are Apple will secure a contract much easier than a battery supplier. Apple's move came after Korean battery maker SK Innovation agreed to a supply contract of at least seven years with Australian Mines' Queensland operation. The Chinese are also searching to secure supplies, as Fujian-based battery maker CATL recently signed a long-term con- tract to supply batteries for major auto- mobile manufacturers with Glencore, a mining and processing company with extensive operations in the Congo. C omp a n i e s f r om BMW AG a n d Volkswagen AG to Samsung SDI Co. are competing to sign multiyear con- tracts to ensure they have sufficient supplies of the metal to meet ambitious targets for electric vehicle production. When buying batteries from third- party suppliers, it’s hard for companies to ensure future supply or know where the cobalt in their batteries was mined. Buying cobalt straight from the mines makes it easier for these companies to control the supply chain of cobalt, while giving them better knowledge of where and under what conditions the metal is being mined. 28 AUGUST 2018 WorldWide Drilling Resource ® Merrill Manufacturing Company announced the addition of stainless steel venturi adapters with rope lugs made of 304 stainless steel for durability. These are stronger and more competitive than the same product in no lead brass. The rope lugs provide easy access to the rope from the top of the well. They have a plastic pipe to male iron pipe connection and are available in 1-inch and 1¼-inch. Merrill Manufacturing is a Valued WWDR Advertiser