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Sanctioned Israeli Billionaire to Gain From Elon Musk Cobalt Deal

Dan Gertler stands to benefit from Tesla’s agreement to buy metal for batteries from Glencore.

By

William Clowes,

Franz Wild, and

Michael J Kavanagh

July 22, 2020, 4:01 AM UTC

Dan Gertler at the Mutanda copper and cobalt mine in the Democratic Republic of Congo in August 2012. — Dan Gertler at the Mutanda copper and cobalt mine in the Democratic Republic of Congo in August 2012.
Photographer: Simon Dawson/Bloomberg

Elon Musk may help sanctioned Israeli billionaire Dan Gertler get a little richer.

Tesla Inc., the company Musk runs, struck a deal last month with Glencore Plc to buy as much as 6,000 tons of cobalt annually for use in the rechargeable batteries that power its electric vehicles. Glencore, in turn, is obligated to pay Gertler about 2.5% of sales from its mines in the Democratic Republic of Congo – royalty rights he acquired from state-owned miner Gecamines.