Apple Inc. is in discussion to acquire a critical mineral known as cobalt that is used in lithium-ion batteries. The tech giant is bargaining with miners to buy cobalt in large amount for a long duration. The lithium-ion batteries that are used in Apple devices such as iPhones, Apple Watch, iPads, and MacBook.
The company is possessive to ensure the cobalt supplies for iPhone and iPad batteries are sufficient. More than a quarter of cobalt that is produced globally is used in batteries of smartphones.
Acquiring cobalt directly from mining companies could ensure battery manufacturing allies of Apple and they will continue to provide enough batteries to the company. The move can assist to increase company’s margin behind sale of device as Apple can negotiate on price with mining companies. And the company will have to pay less to their allies for battery production.
Apple is struggling to buy cobalt since a year, a report from Bloomberg says. Cobalt prices are increasing due to expected growth and rising demand for the component. Cobalt is most provocative and most consumed material in electric industry. Many automotive business giants such as BMW and Tesla are in the race to buy cobalt. These companies are competing to develop high capacity electric cars. It is news that BMW is heading the race and about to deal for 10 years. These high-end companies require cobalt for long duration and in large quantity. After these deals, the cobalt supply can face a shortfall. however, shortage of cobalt will be a major risk to Apple.
Additionally, the Democratic Republic of Congo is the main supplier and exporter of the cobalt, in the country, human rights are given highest preferences due to the strongest presence of Amnesty International. The companies such as Apple and Samsung has announced that its supplier companies don’t employ children to work so that the rules could not become obstacles to deal.