Glencore looking to trade lithium on soaring EV demand
A global mining and commodity giant, Glencore (GLEN.L) is considering adding lithium to its metal portfolio, as the raw material is in high demand due to the rapid expansion of electric vehicles (EVs).
Depending on the outcome of the deal, the Zyothish George and Nick Popovic zinc and copper businesses would combine.
Glencore declined to comment.
The company does not own lithium mines but produces copper, nickel and cobalt, other raw materials that it terms “commodities of the future,” as they are needed to manufacture batteries, electric cars and renewable infrastructure that will help the world transition to a greener economy.
Despite this, it has made a significant investment in lithium-ion battery recycling, investing $200 million in Li-Cycle Holdings Corp (LICY.N) and partnering with Britishvolt to develop a battery recycling plant in England, as governments and companies intensify efforts to recycle old batteries.
Due to proposed bans on fossil-fuel cars by the next decade or so, the auto industry is moving toward making only EVs, increasing the demand for environmentally friendly and socially responsible batteries.
Due to strong demand from the auto sector and Chinese battery makers, prices for lithium have increased dramatically over the last year.
China remains the world’s largest lithium processor, while proposed rival projects in the United States and Europe have faced a range of setbacks.
During the first half of 2022, Glencore’s trading division made record profits of $3.7 billion, exceeding the long-term outlook range and accounting for over 40% of total earnings due in part to COVID-related lockdowns and the Ukraine conflict.
Source- Reuters
Prachi, an accomplished Chief-Editor at The Sustainable Brands Journal, has 15+ years of experience in Europe, the Middle East, and India, managing 90+ global sustainable brands. She’s a prolific writer in sustainability, contributing to various publications. Prachi’s unwavering passion and expertise make her a recognized authority, driving positive change and inspiring a sustainable future.
