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Cobalt, Child Labor, and Your Electric Car, Smartphone Battery

Sep 26, 2018 by

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Two-thirds of the world’s cobalt, an essential ingredient in our smartphones and electric cars, comes from one of the planet’s poorest countries. All too often it is mined by children.

MOST OF HIS NEIGHBORS are still sound asleep at 5 a.m., when Lukasa rises to begin his 12-hour workday. The slender 15-year-old, with an oval face and piercing stare, slips out of his family’s mud-brick home before dawn six days a week. Then he makes the two-hour walk from his tiny village in the southern region of the Democratic Republic of the Congo to a government-owned mining site. (Fortune is withholding the name of the village in order to protect Lukasa and other children.) Once at the mine, Lukasa spends eight hours hacking away in a hole to accumulate chunks of a mineral that is crucial to keeping our modern lives moving: cobalt.

By about 3 p.m., Lukasa has filled a sack with his day’s haul. He hoists the load, which can weigh up to 22 pounds, on his back and lugs it for an hour by foot to a trading depot. “I sell it to Chinese people,” he says, referring to the buyers from Chinese commodity trading companies who dominate the market in the area. Lukasa is wearing a T-shirt with “Prada” written on the front and sitting under a shade tree in his village on a recent Sunday, his one day off, as he explains his routine. With a hint of pride he says, “On good days I can earn 15,000 francs.” That adds up to about $9.

From his vantage point in one of the poorest countries in the world, Lukasa has little awareness that a multibillion-dollar scramble is underway for the grayish metal he digs out of the ground some 300 days a year. Lukasa has, he says, recently begun to grasp that his cobalt mining earnings are a pittance compared with the sums that traders make selling it on the world market. But that business is hard to fathom for those living near Kolwezi, the hardscrabble center of the cobalt industry in Congo. It’s more difficult still for diggers living in poverty, like Lukasa, to understand a surge in demand for the mineral that has sent the price of cobalt on commodities markets rocketing up some 400%, from about $10 a pound in 2016 to a peak of about $44 in April.

Continue: Special Report: Cobalt, Child Labor, and Your Smartphone Battery | Fortune

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