LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Exclusive: Tesla's battery maker suspends cobalt supplier amid sanctions concern

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Fri, Jul 20, 2018
05:30 am
Reuters
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

Panasonic Corp said it was unable to determine how much of the cobalt used in batteries it makes for Tesla cars comes from Cuba, a country subject to U.S. sanctions, and that it had suspended relations with a Canadian supplier as a result of its concerns.

The Japanese electronics maker, the exclusive supplier of batteries to Tesla Inc , made the comments following questions from Reuters about whether the batteries contained Cuban cobalt.

Two sources familiar with the matter told Reuters that some of the cobalt that Panasonic uses to make Tesla`s batteries is mined in Cuba by Canadian supplier Sherritt International Corp .

Panasonic said it was unable to tell how much cobalt sourced from Cuba via its Canadian supplier ended up in the batteries it provided to the U.S. market "due to co-mingling of sources by its suppliers in several phases of manufacturing processes".

"Panasonic has chosen to suspend its relationship with its Canadian supplier," a spokeswoman said, without naming the supplier. She added that Panasonic had used cobalt from the Canadian supplier for batteries used in the Tesla Model S and Model X, but only after February this year.

"Panasonic has sought guidance from the U.S. Treasury Department`s Office of Foreign Assets Control (OFAC) regarding its interpretation of the scope of the U.S. ban on Cuban-origin imports," she said.

A U.S. Treasury official, who asked not to be named, said Treasury does not discuss investigations and could not confirm whether one existed.

The United States imposed sanctions on Cuba after Fidel Castro nationalised swathes of American assets more than 50 years ago.

Tesla, when asked for comment by Reuters, did not address questions about whether its batteries contained Cuban cobalt or whether that could potentially put the company in breach of sanctions.

A spokesman said: "Tesla is aiming to achieve close to zero usage of cobalt in the near future."

The electric vehicle maker, run by billionaire Elon Musk, said in May that it had been working for years to reduce the amount of cobalt it uses in its batteries.

Sherritt declined to comment on questions about whether it sold cobalt to Panasonic.

"We don`t respond to questions about specific client activities," Sherritt`s spokesman Joe Racanelli said.

"We`ve been working in Cuba for 25 years and we sell our Class 1 nickel and cobalt that`s refined from our facility in Fort Saskatchewan, Alberta, to customers in Europe and Asia."SCRAMBLE FOR RESOURCES

An anticipated electric vehicle revolution has sent demand and prices for cobalt - a crucial component in car batteries - surging over the past two years.

Companies are under pressure to prove that the minerals they consume are sourced from mines that do not employ children or cause major environmental damage. Global cobalt supply is dominated by the Democratic Republic of Congo, which is riven by conflict and political instability.

Sherritt produces Cobalt at the Moa mine in Cuba, a 50-50 joint venture between the Canadian company and the state-owned General Nickel Company of Cuba.

Panasonic buys cobalt from Sherritt and the metal is then turned into specialised cobalt chemicals by a contractor, according to the sources.

Panasonic is also supplied with cobalt chemicals by Sumitomo Metal Mining Co Ltd , which produces most of its material in the Philippines, the sources said.

The sources said that Sumitomo supplied the bulk of the cobalt used in Tesla batteries. Reuters was unable to determine what proportion of the cobalt used in Panasonic`s batteries made for Tesla came from Sherritt.

Sumitomo declined to comment on its supply chain.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

Yes Bank and SBI: Technical Analysis for Traders and Investors

Karnataka SSLC Exam 2021: Board releases new date sheet; exams to start from 21 June; See subject-wise timetable HERE!

Stocks to buy with Anil Singhvi: Sandeep Jain recommends Wonderla Holidays today | Money-making Tips!

Gold Price Today 04-03-2021: EXCLUSIVE! Yellow metal may slide below Rs 44,000; check this money making idea

ICICI Bank follows SBI, Kotak Mahindra Bank, HDFC Bank, cuts home loan interest rate

Container Corporation Share Price: Jefferies maintain buy rating and raises price target to Rs 700

Platform ticket price today: Railways hikes fares from Rs 10 to Rs 30 across network

PUBG Mobile India update: Important message from Krafton! India relaunch soon? Check here

MTAR Technologies IPO Subscription: Check allotment status finalisation date and how to check if you got shares

Heranba Industries IPO listing: Hot debut, issue lists at over 40% premium I Retail investors are delighted

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved