Photo: Glencore
Tesla held discussions with Glencore about potentially buying a stake in the Swiss commodities company, according to two people familiar with the matter in a report from Financial Times.
The automaker talked about potentially buying a stake of between 10 and 20 percent in Glencore, and the companies began talks about the plan as early as last year.
The news also comes as companies grapple with the low supply and high price of minerals needed to make electric vehicle (EV) batteries.
The talks picked back up in March of this year, when Glencore CEO Gary Nagle took a tour of Tesla’s Fremont, California factory, which took place as one stop on a roadshow over the mining company’s annual results.
Tesla Joins Fair Cobalt Alliance, Supports Artisanal Miners in Congo https://t.co/T7MsifZjfI
— TeslaNorth.com (@RealTeslaNorth) September 8, 2020
The recent discussions ended without any specific deals reached, according to the sources.
Tesla remains concerned about Glencore’s businesses reaching the high environmental standards the automaker holds itself to, adding that a minority stake in the company could force the company to address potential issues.
Currently, Glencore is the world’s largest miner, trading house and producer of cobalt using mines in the Democratic Republic of Congo, Australia and Canada. Previously, cobalt mining operations in the Democratic Republic of Congo have raised alarms about humanitarian and environmental conditions at mining sites.
