Apple, one of the world’s leading electronics manufacturers could be in trouble.
The company sells over 100 million devices such as its iconic iPhone, iPad and iMac products every year and wields one of the largest software libraries including its very own marketplace for content-hungry users.
But to maintain its assertive position as a leading device manufacturer, Apple needs to secure ample amounts of key raw materials such as lithium, cobalt and other rare earth minerals.
By far the most worrisome commodities that have thrown multiple manufacturers into ethical dilemmas have been lithium and cobalt.
The largest reserves of these two commodities are located in regions with questionable mining practices and challenging operating conditions for Western miners.
Already this year, Democratic Republic of Congo (DRC) officials have set pulses racing amongst Western cobalt miners operating in the DRC after abolishing cornerstone tax exemptions, introducing a 50% “super-tax” on most productive miners and is considering raising its tax royalty rate from the current 2% to as high as 10%, if the government decides to label cobalt a strategic metal.
The two metals are rather different but are having a rather familiar effect on both consumers and producers. The price of both metals has risen exponentially over the past 2 years, with several analysts predicting that what we’ve seen so far is only the start of the so-called ‘lithium-ion battery boom’.
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