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Tesla Strikes Deal to Buy Cobalt From Glencore for EV Plants

  • Automaker has said it is expanding supply chain for new plants
  • Glencore also has cobalt agreements with BMW, battery makers
Telsa Inc. Automobiles Dockside At U.K. Port
Photographer: Luke MacGregor/Bloomberg
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Tesla Inc. will buy cobalt from from Glencore Plc, the world’s biggest miner of the metal, as the carmaker looks to avoid a future supply squeeze on the key battery metal, a person familiar with the matter said.

The contract will help Tesla shore up its cobalt supply for new plants in China and Germany, said the person, who asked not to be identified as the details are private. The opening of Tesla’s so-called gigafactory in China this year has helped propel its shares to a record, as investors turn bullish on Elon Musk’s ambition to transform the company into a global mass-market automaker.