News that carmaker Tesla secured a cobalt supply deal with Glencore has failed to lend any support to blue metal prices in China so far this week, with market participants instead focusing on persistently weak downstream demand.
Tesla will purchase cobalt from trader-miner Glencore to feed its new "Gigafactories" in Shanghai and Berlin, several media outlets reported on Tuesday June 16.
The news immediately triggered optimism in the Chinese stock market, with share prices of several cobalt-focused companies rising sharply on growing concerns that Glencore, the world's largest miner of cobalt, might not have much blue metal to offer into the spot market given the fact it has already signed several supply contracts with other downstream consumers.
This includes deals with
GEM,
SK Innovation and
Samsung SDI, at a total commitment of around 112,000 tonnes between 2020 and 2025.