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Apple in Talks to Buy Cobalt Directly from Miners

113 pointsby lnguyenover 7 years ago

8 comments

bigtonesover 7 years ago
Apple actually does this with a few different commodities. It sources Aluminium directly from mines and smelters in Australia [1], and prefers these type of deals over buying materials on dubious secondary markets like it is forced to do for Tantalum for batteries [2]. Before he became CEO, Tim Cook ran the entire supply chain for Apple and before that for HP&#x2F;Compaq and he became a master of doing big deals to lock up global materials supplies to make it much harder for competitors to compete [3]. As a consequence Apple is known to have one of the most efficient large scale supply chains in tech.<p>[1] <a href="https:&#x2F;&#x2F;www.businessinsider.com.au&#x2F;how-apple-forced-microsoft-to-build-a-tablet-2012-6" rel="nofollow">https:&#x2F;&#x2F;www.businessinsider.com.au&#x2F;how-apple-forced-microsof...</a><p>[2] <a href="http:&#x2F;&#x2F;www.newsweek.com&#x2F;2015&#x2F;02&#x2F;13&#x2F;where-apple-gets-tantalum-your-iphone-304351.html" rel="nofollow">http:&#x2F;&#x2F;www.newsweek.com&#x2F;2015&#x2F;02&#x2F;13&#x2F;where-apple-gets-tantalum...</a><p>[3] <a href="http:&#x2F;&#x2F;fortune.com&#x2F;2009&#x2F;02&#x2F;19&#x2F;report-apple-has-cornered-the-flash-memory-market&#x2F;" rel="nofollow">http:&#x2F;&#x2F;fortune.com&#x2F;2009&#x2F;02&#x2F;19&#x2F;report-apple-has-cornered-the-...</a>
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wyldfireover 7 years ago
This seems less about scarcity and more about Apple protecting their brand.<p>&gt; ...child labor is still used in parts of the mining industry.<p>&gt; ...Apple has stepped up its engagement with cobalt suppliers after the origin of the metal in its supply chain came under scrutiny from human rights groups.<p>A great many of Apple&#x27;s customers care a lot about this kind of thing. Also, Apple may genuinely feel like they&#x27;re obligated to be a leader in this area.
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tyfonover 7 years ago
Maybe it&#x27;s time to reopen the cobalt mines close by here [1]. Today it&#x27;s a museum but at one point it supplied 80% of the worlds cobalt needs, mainly for colouring.<p>I wonder at what price level it would become profitable again. It was closed in 1898.<p>[1]<a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Blaafarvev%C3%A6rket" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Blaafarvev%C3%A6rket</a>
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coolspotover 7 years ago
Poor Gorillas.<p>Their habitat is threatened by rare metal miners in Congo.<p>It was already bad without electric cars, just with phone battery demand.<p>[42] <a href="http:&#x2F;&#x2F;www.wired.co.uk&#x2F;article&#x2F;grauers-gorillas-bushmeat-conflict-minerals-technology" rel="nofollow">http:&#x2F;&#x2F;www.wired.co.uk&#x2F;article&#x2F;grauers-gorillas-bushmeat-con...</a><p>[64] <a href="http:&#x2F;&#x2F;www.mining.com&#x2F;illegal-mining-in-congo-wiping-out-gorilla-populations&#x2F;" rel="nofollow">http:&#x2F;&#x2F;www.mining.com&#x2F;illegal-mining-in-congo-wiping-out-gor...</a>
yeasayerover 7 years ago
Where are these new battery technologies that are invented every 6 months, according to the news?
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elhudyover 7 years ago
Which cobalt mining companies in particular is Apple engaging with? Any on the NYSE?
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baldfatover 7 years ago
This is scary and shows the growth of electric cars might not scale. The world&#x27;s richest company, Apple, is buying up supplies of a dwindling resource that anything that uses a battery needs. This is the boost for others to research other car technology or a new battery that is always 10 years away for the last 20 years.
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da_chickenover 7 years ago
I don&#x27;t see how this helps with the child labor problem that they were criticized for by Amnesty International. How do you &quot;buy directly from the miners&quot; and verify that the miners are actually the miners doing the work? I mean, is Apple going to send people into the mine to buy the ore as it falls from the pick?
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