• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechApple

Here’s Why Apple Wants to Buy Cobalt Directly From Miners

By
Don Reisinger
Don Reisinger
Down Arrow Button Icon
By
Don Reisinger
Don Reisinger
Down Arrow Button Icon
February 21, 2018, 12:53 PM ET

In an effort to avert potential production problems of its devices, Apple is in talks to directly acquire a critical mineral used in lithium-ion batteries.

The tech giant is negotiating with miners to buy thousands of metric tons of cobalt annually for a period of five years or more, Bloomberg is reporting, citing people who claim to have knowledge of the discussions. It’s still possible, however, that Apple’s discussions will fall apart.

Cobalt is a critical ingredient in lithium-ion batteries that power Apple’s iPhones, iPads, Apple Watch, and MacBooks. However, with cobalt demand soaring and supply constrained, a shortage of cobalt would be a major risk to Apple’s business.

By acquiring cobalt directly, Apple could ensure its battery manufacturing partners have the components they need to continue feeding batteries to the company. Apple might also be able to negotiate better cobalt prices because it would buy a larger quantity than smaller individual manufacturers that don’t purchase as much supply. The move could ultimately increase Apple’s margins on the sale of each device.

Still, cobalt is one of the most controversial materials in electronics. Two-thirds of the world’s cobalt supply comes from the Democratic Republic of Congo, where international human rights advocates like Amnesty International have said child labor is a problem. Apple and other prominent tech companies, including Samsung, have worked to ensure their cobalt supplies come from mines that don’t employ children. Buying supplies directly from miners would give Apple more visibility into labor practices on the ground.

Get Data Sheet, Fortune’s technology newsletter

Nearly a year ago, Apple announced that it would stop buying cobalt mined by hand in the Congo until it could confirm companies in its supply chain had eliminated child labor and dangerous working conditions.

Apple did not immediately respond to a Fortune request for comment on the report.

About the Author
By Don Reisinger
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Photo of vegan cheese products
AITech
A Mark Cuban–backed vegan cheese company trained AI to scrutinize cardboard boxes. It’s saved $400,000
By Jake AngeloMay 1, 2026
18 hours ago
Young trade worker learning on job
SuccessHiring
Forget Big Tech: Small businesses will hire nearly 1 million grads in 2026—and some of the hottest roles are gloriously AI-proof
By Emma BurleighMay 1, 2026
20 hours ago
Andrew McAfee
SuccessCareers
MIT AI expert warns automating Gen Z entry-level jobs could backfire—and cost companies their future workforce
By Preston ForeMay 1, 2026
20 hours ago
duke
Big TechAmazon
Amazon Prime Video reaches deal with Duke Blue Devils to air 3 games per season
By The Associated PressMay 1, 2026
22 hours ago
valerie
CommentaryLayoffs
Tesla’s former HR chief: the AI layoff panic Is built on a false premise—here’s what most workers need to know
By Valerie Capers WorkmanMay 1, 2026
22 hours ago
AI
AIdisruption
Meet the Americans dismissing AI hype and using it with ingenuity: ‘The efficiencies gained out of it have been tremendous’
By Cathy Bussewitz and The Associated PressMay 1, 2026
22 hours ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
22 hours ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
2 days ago
The U.S. economy is booming — just not where 50 million Americans live
Commentary
The U.S. economy is booming — just not where 50 million Americans live
By Derek KilmerMay 1, 2026
1 day ago
Current price of oil as of May 1, 2026
Personal Finance
Current price of oil as of May 1, 2026
By Joseph HostetlerMay 1, 2026
23 hours ago
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
5 days ago
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
Law
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.