Tesla supports private miners' initiative in the Congo

Tesla Inc. is sponsoring a new initiative to help informal cobalt miners in the Democratic Republic of the Congo as automakers and miners try to reassure customers about ethical supplies of the battery metal from the mining industry. The company joined the fledgling Fair Cobalt Alliance, according to an updated membership list on the group's website. The goal of the FCA is to end the use of child labor in mines and to improve working conditions in the Congo. She is also supported by the mining company and trader Glencore Plc and the large Chinese cobalt refiner Zhejiang Huayou Cobalt Co. Almost three quarters of the cobalt produced worldwide comes from the Congo, and demand is forecast to grow sharply in the years to come. However, the artisanal cobalt produced by small miners who often dig by hand has become a divisive issue. Groups like the Organization for Economic Co-operation and Development ch locations and production from the country's artisanal mines are often mixed with industrial production. Before joining the group, Glencore had long argued that customers would be better served by buying from its mines, where safety and environmental standards were observed. Still, informal industry creates tens of thousands of jobs by exploiting small deposits that would be uneconomical for large miners, and groups like the OECD have said that businesses should work with the sector to encourage improvement. Tesla signed a deal with Glencore earlier this year to buy cobalt from its Congo mines. The company has also tried to reduce its reliance on the metal - while there is enough cobalt supply right now, demand is expected to increase in the coming years as Tesla expands in China and Europe, and Volkswagen AG to BMW AG Introduces fleets of electric vehicles.