• 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
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
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
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

NewslettersTerm Sheet
VC firms rarely reinvent themselves. Kleiner Perkins did—and has a new $3.5 billion to show for it
By Allie GarfinkleMarch 27, 2026
47 minutes ago
chat
CybersecurityChatGPT
What if I told you the ‘AI slop’ debate was over 100 years old? It used to be about ‘ghostwriting’
By Emily Hodgson Anderson and The ConversationMarch 27, 2026
54 minutes ago
Big TechMarkets
Anthropic accidentally leaked details of a new AI model that poses unprecedented cybersecurity risks
By Jim EdwardsMarch 27, 2026
60 minutes ago
krueger
CommentarySafety
Rogue AI is already here
By David KruegerMarch 27, 2026
1 hour ago
NewslettersFortune Tech
Anthropic data leak reveals powerful, secret Mythos AI model
By Alexei OreskovicMarch 27, 2026
2 hours ago
AIBrainstorm AI
Cursor CEO warns vibe coding builds ‘shaky foundations’ and eventually ‘things start to crumble’
By Marco Quiroz-GutierrezMarch 27, 2026
3 hours ago

Most Popular

C-Suite
'I didn’t want anybody shooting me': Five Guys CEO gave away $1.5 million bonus to employees over botched BOGO burger birthday celebration
By Fortune EditorsMarch 25, 2026
2 days ago
Environment
Vail Resorts CEO says it’s time to think beyond the $1,000 ski pass that helped build the empire
By Fortune EditorsMarch 26, 2026
1 day ago
Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
3 days ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
4 days ago
Economy
Social Security insolvency: How a six-figure cap to flatten benefits for the ultrawealthy could buy the program 7 critical years
By Fortune EditorsMarch 26, 2026
1 day ago
Personal Finance
Current price of gold as of March 25, 2026
By Fortune EditorsMarch 25, 2026
2 days 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.