Categories Finance, Other Industries, Technology
Here is how Apple plans to avoid battery material shortages
Proper supply of raw materials is vital to ensure the smooth running of a business.
Cobalt is one such material. It is used in lithium-ion batteries and is an essential component in the production of smart devices and electric vehicles. As the demand for electric vehicles is likely to increase in the near future, there are chances of a shortage of batteries and related components such as cobalt.
Foreseeing this situation, Apple has entered into talks with miners for long-term supplies of cobalt to ensure it has enough of the material in the event of any shortages. Apple is said to be looking to enter into contracts to secure several thousand metric tons of cobalt a year for five or more years. The talks are confidential, and there is no assurance that any deal may materialize.
Till now, Apple had left the business of purchasing materials to its battery manufacturers. However, now the company appears to be taking on a more active role. This is not the first time Apple has purchased an important resource. About nine years ago, Apple bought a significant portion of the world’s NAND Flash supply, thus gaining a considerable advantage over its competitors.
Apple does not appear to be the only one looking to secure long-term deals to gain ample supplies of cobalt. Car manufacturers like Volkswagen and BMW are also said to be looking at deals to ensure an adequate supply of the material for the production of electric vehicles.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to