Tag Archives: cobalt

Joe Rogan guest Siddharth Kara reveals dark side of cobalt

A Harvard visiting professor and modern slavery activist exposed the “appalling” cobalt mining industry in the Congo on a recent episode of “The Joe Rogan Experience” that went viral. The video has already racked up over one million views and counting.

Siddharth Kara, author of “Cobalt Red: How The Blood of The Congo Powers Our Lives,” told podcast host Joe Rogan that there’s no such thing as “clean cobalt.”

“That’s all marketing,” Kara said. 

Kara told Rogan that the level of “suffering” of the Congolese people working in cobalt mines was astounding. 

When asked by Rogan if there was any cobalt mine in the Congo that did not rely on “child labor” or “slavery,” the Harvard visiting professor told him there were none. 

“I’ve never seen one and I’ve been to almost all the major industrial cobalt mines” in the country, Kara said. 

One reason for that is that the demand for cobalt is exceptionally high: “Cobalt is in every single lithium, rechargeable battery manufactured in the world today,” he explained. 

A guest on the Joe Rogan experience revealed the dark side of cobalt mining.
The Joe Rogan Experience

As a result, it’s difficult to think of a piece of technology that does not rely on cobalt to function, Kara said. “Every smartphone, every tablet, every laptop and crucially, every electric vehicle” needs the mineral.

“We can’t function on a day-to-day basis without cobalt, and three-fourths of the supply is coming out of the Congo,” he added. “And it’s being mined in appalling, heart-wrenching, dangerous conditions.” 

But “by and large the world doesn’t know what’s happening” in the Congo, Kara said. 

“I don’t think people are aware of how horrible it is,” Rogan agreed.

Harvard visiting Professor Siddharth Kara said there were zero cobalt mines in the Congo that did not rely on child labor or slavery.
The Joe Rogan Experience

The Biden administration recently entered into an agreement with the Democratic Republic of the Congo and Zambia to bolster the green energy supply chain, despite the DRC’s documented issues with child labor. 

Cobalt initially “took off because it was used in lithium-ion batteries to maximize their charge and stability,” Kara explained. “And it just so happened that the Congo is sitting on more cobalt than the rest of the planet combined,” he added. 

As a result, the Congo, a country of roughly 90 million people, became the center of a geopolitical conflict over valuable minerals. “Before anyone knew what was happening, [the] Chinese government [and] Chinese mining companies took control of almost all the big mines and the local population has been displaced,” Kara said. Subsequently, the Congolese are “under duress.” 

Siddharth Kara said miners work in “subhuman” conditions for less than a dollar a day.
AFP via Getty Images

He continued: “They dig in absolutely subhuman, gut-wrenching conditions for a dollar a day, feeding cobalt up the supply chain into all the phones, all the tablets, and especially electric cars.” 

British rapper Zuby recommended that his nearly one million followers watch the interview. 

“This latest Joe Rogan Experience podcast is heavy,” he wrote. “If you have a smartphone or electric vehicle (that’s 100% of you) then I strongly recommend listening to it.”

Some, if not all, of the famous tech and energy companies in the world are implicated in the humanitarian crisis, Kara said. 

“This is the bottom of the supply chain of your iPhone, of your Tesla, of your Samsung,” he asserted. 

Fox News’ Thomas Catenacci contributed to this report. 

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How Hunter Biden’s Firm Helped Secure Cobalt for the Chinese

China Molybdenum lined up about $700 million of that total as loans from Chinese state-backed banks, including China Construction Bank. BHR raised the remaining amount from obscure entities with names like Design Time Limited, an offshore company controlled by China Construction’s investment bank, according to the Hong Kong filings.

Before the deal was done, BHR also signed an agreement that allowed China Molybdenum to buy BHR’s share of the mine, which the company did two years later, the filings show. That purchase gave China Molybdenum 80 percent ownership of the mine. (Congo’s state mining enterprise kept a stake for itself.)

By the time BHR sold its share in 2019, Mr. Biden controlled 10 percent of the firm through Skaneateles L.L.C., a company based in Washington. While Chinese corporate records show Skaneateles remains a part owner of BHR, Chris Clark, a lawyer for Mr. Biden, said that he “no longer holds any interest, directly or indirectly, in either BHR or Skaneateles.” The Chinese records show that Mr. Biden was no longer on BHR’s board as of April 2020. Mr. Biden did not respond to requests for comment.

A former BHR board member told The New York Times that Mr. Biden and the other American founders were not involved in the mine deal and that the firm earned only a nominal fee from it. The money, the former board member said, went into the firm’s operating funds and was not distributed to its owners.

It is unclear how the firm was chosen by China Molybdenum. Current executives at BHR did not return emails and phone calls seeking comment. “We don’t know Hunter Biden, nor are we aware of his involvement in BHR,” Vincent Zhou, a spokesman for China Molybdenum, said in an email.

A dozen executives from companies involved in the deal, including Freeport-McMoRan and Lundin, said in interviews that they were not given a reason for BHR’s participation. Most of the executives also said they were unaware during the deal of Mr. Biden’s connection to the firm.

Paul Conibear, Lundin’s chief executive at the time, said it was made clear that China Molybdenum was leading the transaction even though the buyer of Lundin’s stake was BHR.

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Hunter Biden firm helped a Chinese company purchase one of world’s largest cobalt mines 

An investment firm founded by Hunter Biden assisted a Chinese company in purchasing one of the world’s richest cobalt mines from an American company for $3.8 billion – helping the conglomerate gain a massive share of the key metal used to make electric car batteries.

The president’s son was one of three Americans who joined Chinese partners in establishing the Bohai Harvest RST Equity Investment Fund Management Company, or BHR, in 2013.

The Americans controlled 30 percent of the company and made successful investments that culminated in aiding China Molybdenum purchase the Tenke Fungurume cobalt mine in the Congo from the American company Freeport-McMoRan in 2016, the New York Times reported. 

The news comes after President Joe Biden had warned that China could use its dominance of mined cobalt to disrupt America’s development of electric vehicles.

It also adds to the scrutiny Biden and his father have faced for his dealings with Chines and Ukrainian companies while Joe was vice president and later running for president.  

Hunter Biden (pictured on November 10) was one of three American founders of a investment firm primarily owned by Chinese partners. The firm helped secure the richest cobalt mine in the world for a Chinese company in 2016

Biden founded BHR with two other Americans and Chinese partners in 2013. He was no longer part of the board as of April 2020

Bohai Harvest RST Equity Investment Fund Management Company, or BHR, partnered with China Molybdenum to buy the Tenke Fungurume cobalt mine in the Congo (pictured)

Biden’s firm made the deal with Joe Biden, right, was still vice president. The now president has warned that America’s electric vehicle production could he stunted by China’s dominance over cobalt, one of the key components of the electric batteries  

BHR slowly made its way into an investment powerhouse after helping finance an Australian coal-mining company controlled by a Chinese state-owned firm, the paper reported. 

The investment company’s big break came in 2016 when it bought and sold a stake in CATL, a Chinese company that is now the world’s biggest maker of batteries for electric vehicles. 

That same year, China Molybdenum – one of the world’s leading producers of the precious metals molybdenum and tungsten – announced it would purchase the Tenke Fungurume cobalt mine from Freeport-McMoRan, an American mining company. 

But in order to purchase the mine, the Chinese company needed a partner to buy out one of the stakeholders, Lundin Mining of Canada. 

That’s when BHR came in to buy out Lundin with $1.14 billion raised entirely from obscure Chinese state-backed companies, according to the Times.

Biden still controlled 10 percent of BHR when its shares of the mines were sold to China Molybdenum in 2019. 

The Tenke Fungurume cobalt mine, in the Congo, is worth $3.8 billion and holds the largest deposit of the metal

The mines were purchased from the American-based Freeport-McMoRan company, which owns mines across the nation (pictured a Freeport-McMoRan mine in Colorado)

Chris Clark, one of Biden’s lawyers, said the president’s son ‘no longer holds any interest, directly or indirectly, in either BHR or Skaneateles,’ a firm Biden used to control his BHR shares. 

Chinese records show Biden was no longer on BHR’s board as of April 2020, and a former board member told the Times that the American founders were not directly involved in the mine deal and supposedly earned only a nominal fee from it. 

‘We don’t know Hunter Biden, nor are we aware of his involvement in BHR,’ Vincent Zhou, a spokesman for China Molybdenum, said in a statement. 

A White House spokesman told the Times that President Biden has not been made aware of his son’s connection to the sale. 

The president has often faced backlash for Biden’s dealings with Chines and Ukrainian companies through banks, lobbies and investment firms.

The necessity for cobalt by American companies was made even more vital after the president signed an executive order in August outlining a goal to have electric and other zero-emissions vehicles make up half of the new cars and trucks sold in the U.S. by 2030.

The 50 percent goal is nonbinding and mostly symbolic, but it sets the expectation for U.S. automakers to begin the transition from building gas-powered vehicles to electric ones.

It includes battery electric, plug-in hybrid electric, or fuel cell electric vehicles. Biden also included the first-ever national network of electric vehicle charging stations in his $1.2 trillion infrastructure bill.

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Hunter Biden’s firm helped Chinese company purchase rich cobalt mine in $3.8 billion deal: report

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An investment firm that counts Hunter Biden among its founders helped a Chinese company purchase one of the world’s most lucrative cobalt mines from an American company, according to a report by The New York Times. 

Biden established the firm Bohai Harvest RST (BHR) Equity Investment Fund Management Company with two other Americans and some Chinese partners in 2013. The American members controlled 30 percent of the Shanghai-based operation and served on the board. 

The company notably completed a deal in 2016 that saw a Congo cobalt and copper mine transfer from American company Freeport-McMoRan to Chinese outfit China Molybdenum for the sum of $2.65 billion. 

CNN anchor John King said on Wednesday that Hunter Biden is a “swamp creature” who used his powerful father to make money. (Photo by Teresa Kroeger/Getty Images)
(Photo by Teresa Kroeger/Getty Images)

BHR served as a minority stakeholder to buy out around $1.14 billion of shares from Lundin Mining of Canada, who owned a portion of the Congo mine. 

China Molybdenum then bought BHR’s shares of the mine two years later, according to Hong Kong filings. The deal resulted in China Molybdenum owning 80% of the mine, with the remaining portion owned by Congo’s state mining enterprise. 

HUNTER BIDEN APPEARS AT NYC ART GALLERY DISPLAYING HIS PAINTINGS WITH WIFE MELISSA

The Times reported that Biden controlled 10 percent of BHR through Skaneateles LLC, a company based in Washington. 

Chris Clark, a lawyer for Biden, said he “no longer holds any interest, directly or indirectly, in either BHR or Skaneateles,” and Chinese records indicated Biden was not a member on the board as of April 2020. 

Hunter Biden, the son of new US President Joe Biden, attends his father’s inauguration as 46th US President  on January 20, 2021, at the US Capitol in Washington, DC. (Photo by JONATHAN ERNST / POOL / AFP) (Photo by JONATHAN ERNST/POOL/AFP via Getty Images)
(Getty Images)

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But Chinese business records reviewed by Fox News in April 2021 show that Hunter Biden continues to hold a 10% stake in Chinese private equity firm Bohai Harvest RST Equity Investment Fund Management Co. through Hunter’s company, Skaneateles LLC.

“He has been working to unwind his investment, but I would certainly point you — he’s a private citizen,” Psaki said at that time. “I would point you to him or his lawyers on the outside on any update.”

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A former board member also claimed that money from the deal – which the owners were not involved in – went to the operating funds and did not distribute among the owners. 

“We don’t know Hunter Biden, nor are we aware of his involvement in BHR,” Vincent Zhou, a spokesman for China Molybdenum, said in an email.

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Hunter Biden’s business ties remain an item of intense scrutiny for the media, particularly his activity in China. President Biden particularly warned about China’s growing dominance of cobalt as a stumbling block to America’s attempts at shifting from petrol gas to electric cars, as cobalt is a key ingredient in electric car batteries. 

Tesla last year pursued a deal to acquire Glencore, a Canadian mining company, in an effort to increase its acquisition of cobalt for its electric car batteries. 

Vehicles are seen parked at the Tesla car plant Monday, May 11, 2020, in Fremont, Calif. The parking lot was nearly full at Tesla’s California electric car factory Monday, an indication that the company could be resuming production in defiance of an order from county health authorities. (AP Photo/Ben Margot)

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Northvolt produces battery with recycled nickel, manganese, cobalt

Krisztian Bocsi | Bloomberg Creative Photos | Getty Images

Swedish battery firm Northvolt said Friday it had produced its first battery cell with what it described as “100% recycled nickel, manganese and cobalt.”

In a statement, the Stockholm-headquartered company — which has attracted investment from Goldman Sachs and Volkswagen, among others — said the lithium-ion battery cell was manufactured by its recycling program, Revolt.

The cell’s nickel-manganese-cobalt cathode had been produced using metals “recovered through the recycling of battery waste.” Tests showed that performance was on a par with cells made using metals that had been freshly mined, Northvolt said.

On Friday, the business said the design of its own recycling facility would be expanded so it could recycle 125,000 tons of batteries annually.

Construction of the plant, called Revolt Ett, is slated to begin in the first quarter of 2022, with operations starting in 2023.

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It will use materials from end-of-life EV batteries as well as scrap from Northvolt Ett, the company’s gigafactory, where the first battery is expected to be produced before the end of 2021. Both facilities will be located in Skellefteå, northern Sweden.

According to the company, the Revolt plant will be able to recycle materials including lithium, cobalt, manganese and nickel, supplying the gigafactory in the process.

In addition, plastics, copper and aluminum will also be recovered and “recirculated back into manufacturing flows through local third-parties.”

In a phone interview with CNBC, Emma Nehrenheim, Northvolt’s chief environmental officer, said: “Theoretically, you can, by definition, recycle any metal that you have in a battery and make a new battery out of it.”

“As a fundamental strategy, this means that when the market of EVs is mature — so, at the point where [an] equal amount of cars would enter the street as the amount of cars needing to be scrapped or sent off for recycling — you can actually, in theory, have a very, very high recycling rate … of batteries.”

“And this means that you would not be subject to a very liquid raw material market and you would also protect yourself from very high footprints,” Nehrenheim, who is also head of Revolt, said.

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Northvolt’s plans come at a time when the shift to electric vehicles is beginning to gain momentum.

This week, signatories to a declaration at the COP26 climate change summit said they would “work towards all sales of new cars and vans being zero emission globally by 2040, and by no later than 2035 in leading markets.”

While the U.S., China and carmakers including Volkswagen and Toyota were absent from the declaration, signatories did include the U.K., Mexican and Canadian governments and major automotive firms such as Ford, General Motors and Volvo Cars.

As global supply chains face serious pressure due to a multitude of factors, the notion of recycling materials and developing a circular economy is starting to become an attractive proposition to some businesses, including those in the electric vehicle sector.

In March of this year, Lucien Mathieu, from the Brussels-based campaign group Transport & Environment, sought to highlight the potential of recycling in the EV industry.  

In a statement on T&E’s website, he said: “Unlike today’s fossil fuel powered cars, electric car batteries are part of a circular economy loop where battery materials can be reused and recovered to produce more batteries.”

The recycling of battery materials, Mathieu argued, was crucial when it came to reducing “the pressure on primary demand for virgin materials” and limiting “the impacts raw material extraction can have on the environment and on communities.”

‘Much more local’

Northvolt’s Nehrenheim was asked about how important she felt ideas about recycling and a circular economy would be going forward.

“I think this is going to be the key driver for any new industry,” she said. “There will be no disruptive technology that can live without this and I think that in the long run … recycled materials in any industry will out compete any other.”

“Long term, it’s going to be much more profitable once the processes are established to just use a product to produce a new product,” she went on to state.

“You’re reducing dependence … on the raw material market, you have a much more sustainable source … it’s much more local.”

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electric cars face rising battery lithium nickel cobalt costs

A GM employee poses with an example of the company’s next-generation lithium metal batteries at GM Chemical and Materials Systems Lab in Warren, Michigan, September 9, 2020.

Steve Fecht | General Motors | Handout | via Reuters

BEIJING — Growing demand for electric car batteries will cause prices of the main materials to surge, Goldman Sachs analysts said in a March 18 note.

That in turn will drive prices of batteries higher by about 18%, affecting the total profit of electric car makers since the battery accounts for about 20% to 40% of the vehicle cost, the Goldman analysts said.

While the report didn’t give specific price targets for the commodities, the analysts’ model predicted a return to historical peak prices would more than double the cost of lithium for electric battery makers. That of cobalt would also double, while the cost of nickel would rise by 60%.

A new type of battery

Limited availability of nickel suitable for car batteries could even accelerate a shift to another kind of battery called lithium iron phosphate (LFP), the report said. Tesla and Chinese start-up Xpeng are among automakers already using this type of battery, which does not use nickel or cobalt but stores relatively less energy.

If nickel prices hit their historic high of $50,000 per tonne, that could add $1,250 to $1,500 per electric vehicle, which could hurt consumer demand for the cars, the analysts said.

Ultimately, the growth of the electric car industry and demand for battery materials depends on how many vehicles people buy. The tipping point for consumers broadly to switch from gas-powered vehicles to electric cars is generally expected to come when the battery cost has fallen sufficiently.

That shift could happen in the next decade. Goldman predicts battery costs will drop below that of internal combustion engines in 2030.

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