Vale Signs First Major Cobalt Deal in Benchmark for Battery Boom
- Arrangement to help fund expansion at Canadian nickel mine
- Wheaton expects to announce another streaming deal soon
A Cobalt nugget.
Photographer: Cole Burston/BloombergThis article is for subscribers only.
Vale SA reached agreements to sell future cobalt production in what may set a benchmark for automakers, battery makers and tech companies looking to secure long-term supplies of the metal.
A $690 million upfront payment is one of the largest ever cobalt streaming arrangements and the first large-scale, long-term deal to be signed since expectations of an electric-vehicle revolution triggered a battery commodity boom. It will help pay for an expansion announced earlier Monday at the Voisey’s Bay nickel complex in Canada.