Tesla Inc. supports a new initiative to support informal cobalt miners in the Democratic Republic of the Congo as automakers and mining companies seek to reassure customers that battery metal is ethically mined.
According to the updated list of members on the group's website, the company has joined the newly formed Fair Cobalt Alliance. FCA is committed to ending child labor in mining operations and improving working conditions in Congo. It is also backed by miner and trader Glencore Plc and large Chinese cobalt processor Zhejiang Huayou Cobalt Co.
Almost three quarters of the world's cobalt comes from the Congo, and demand is forecast to rise in the coming years. However, artisanal cobalt, mined by small miners who are often hand-dug, has become a point of contention. Groups such as the Organization for Economic Co-operation and Development
The sites and products of the country's artisanal mines are often mixed with industrial production.
Before joining the group, Glencore has long argued that customers would be better off purchasing products from its mines where safety and environmental standards were respected. However, the informal industry creates tens of thousands of jobs by developing small mines that would be uneconomical for large mining companies, and groups such as the OECD have said that companies should engage with the sector to encourage improvements.
Earlier this year, Tesla struck a deal with Glencore to buy cobalt from its mines in Congo. The company is also looking to reduce its dependence on the metal - while there is ample supply of cobalt for now, demand is expected to rise in the coming years as Tesla expands in China and Europe and Volkswagen AG and BMW AG roll out a fleet of electric vehicles.
