Issue.24 - Boiling Red Cobalt
And the lowest point of our global supply chain.
24. Introduction
This newsletter should be avoided at all costs.
It has been written as a seed for some very specific minds.
It is not an article written for those who think the world is split into two political sides out of 360º angles.
Neither is an article written just to be read.
It is an article written using the lowest frequencies to signal a message only to the most aware of antennas.
A call to action that goes way beyond the superficial and boring idea of collecting leads and data.
A much more reliquary type of call to action that resonates with a type of feeling only genuinely known to some.
Whereas anxiety is a feeling known to all.
That feeling that something is wrong and time isn’t clocking as it should.
Knocking constantly in the background of our mind while trying to say something that can’t be immediately understood for being too complex and personal.
An excess of everything.
But a lack of something.
A rush that ought to be.
With regret for not being.
A surplus of comfort.
But a lack of true relief.
Such a newsletter is the type of bitter medicine made to treat only conditions acknowledged to exist.
Forasmuch the lack of questions is the diagnosis of every single misdiagnosed condition.
True health is not only sanity - mind.
True health is not only physical - body.
True health is not only willpower - spirit.
True health is a triad of balance, a trinity of forces, and a fountain of hope.
Turning you into a sustainable factory of resources able to fight any kind of inner distress.
And usually held together by a cause or a reason, which is always external to ourselves.
Because what is inner pertains to you.
And what is outer pertains to others.
But both are one and the same.
Are they really seen as such, though?
Ubuntu.
This is an African indigenous philosophy first mentioned in Issue.11
“I am because we are.”
“I am because you are.
24.1 The Shabara Mine
And the pitiless bottom of the battery supply chain.
The Shabara Mine - Video shot by Siddharta Kara. Published January 5th 2023 - One of many cobalt-rich regions in the Democratic Republic of Congo (DRC)
Have you ever wondered about the structure behind a supply chain for a product?
A retail store is a business that sells goods directly to consumers. It offers an inventory of packaged goods that comes from warehouses through bulk logistics and transportation.
A warehouse is a facility used for storing goods. Distributors, manufacturers, importers, and exporters use warehouses to catalogue, maintain, and centralize an inventory of finished and processed products from factories.
Factories are industrial facilities that process and refine raw ingredients to produce parts and components and assemble them into new products.
Suppliers provide Raw Ingredients, unifying and distributing the flow of specific materials extracted or cultivated in sites with natural resources.
The phone you use daily has to go through every single one of those steps to arrive at your hands and serve as an indispensable utility in your everyday life.
Of all the materials necessary to build devices, there is one that is familiar to many different products within this category: batteries.
Batteries, nevertheless, need to be rechargeable to serve their purpose.
That’s when the utility of the cobalt ore comes into play.
Cobalt is a versatile metal that plays a significant role in lithium-ion batteries.
However, most of the cobalt nowadays is extracted in the Democratic Republic of the Congo (DRC), where the cobalt industry operates with many overlooked issues.
Batteries containing cobalt are primarily used in a wide range of modern electronic devices and applications, including smartphones and tablets, laptops and portable electronics, electric vehicles (EVs), cordless power tools, medical devices, large-scale energy storage systems, wearable technology and various consumer electronics including cameras, portable speakers, and drones. These products benefit from the high energy density, long cycle life, and stability provided by cobalt-containing lithium-ion batteries, making them essential in today's technology-driven world.
But have you ever wondered where all of the raw ingredients for this hardware mentioned above come from?
Below are some excerpts with comments from the book Cobalt Red: How the Blood of the Congo Powers Our Lives, published by St. Martin's Publishing Group - by the author Siddharta Kara, who first brought this theme to light.
24.2 Cobalt Epicenter
A city that centralizes the raw ingredients from the world’s batteries.
Chapter 1: "Unspeakable Richness"
"Imagine for a moment if almost three-fourths of all fossil fuel beneath the earth’s surface was instead extracted from a single patch of earth roughly four hundred by one hundred kilometres in size. Imagine that within this patch of earth, approximately half the oil was located in and around a single city and that the deposits were shallow enough for anyone to access with a shovel. This would surely be the most indispensable city in the world. Massive drilling companies would flock to it to stake their claims on the riches. So too would the local population, looking for work and a chance to improve their lives. However, if there were no proper governance, oversight, or enforcement of labor laws, chaos would ensue. That is precisely what has happened in the cobalt-rich region of Congo."
To grasp the magnitude of the mineral resources available in the cobalt-rich regions in the Democratic Republic of Congo (DRC), we would need to compare the dimensions of these industrial zones with some examples. But first, let’s understand how all fossil fuel production is currently allocated around the globe with some fresh data.
If we consider three-fourths, or 75%, of all fossil fuels currently produced, oil (petroleum) production withholds industrial zones in more than 17 countries spread across the Middle East, North America, and the CIS (Commonwealth of Independent States).
If we are to consider the same for coal production, we would have the industrial zones spread across 3 countries (China, India and Indonesia) in the Asia Pacific
Natural gas production would be equivalent to industrial zones in more than 21 countries spread across North America, the CIS, the Middle East, and Africa.
We can’t possibly calculate the dimensions of all these industrial zones, but for the sake of comparison, what if we could fit them all in the geographical delimitation of the Amazon Rainforest, containing 5,500,000 km2 of area? It’s a fair comparison, considering they are spread across 41 countries - but attention we are not fitting 41 countries inside the Amazon Rainforest; we are fitting the fossil fuel industrial zones of these countries within the Amazon Rainforest.
Now, for the sake of fiction, we put all those fossil fuel industrial zones mentioned above within that same geographic delimitation—a fictional 5,500,000 km2 area filled with natural reserves of coal, oil, and natural gas that would represent industrial zones spread across different regions of the globe.
Now, for that much-needed comparison, we now get “a single patch of earth roughly four hundred by one hundred kilometres in size,” which is the area reported by Siddharta Kara to represent the city of Kolwezi, tucked in the hazy hills of the southeastern corner of the Democratic Republic of the Congo and the main source of cobalt ore on the planet.
Although most people have never heard of Kolwezi, billions of people could not conduct their daily lives without this city. The batteries in almost every smartphone, tablet, laptop, and electric vehicle made today cannot recharge without Kolwezi. The cobalt found in the dirt here provides maximum stability and energy density to rechargeable batteries, allowing them to hold more charge and operate safely for longer periods. Remove cobalt from the battery, and you will have to plug in your smartphone or electric vehicle much more often, and before long, the batteries may very well catch on fire. There is no known deposit of cobalt-containing ore anywhere in the world that is larger, more accessible, and higher grade than the cobalt under Kolwezi.
Now let’s add it right next to the Amazon rainforest geographical projection.
The area of 400 by 100 kilometres, which represents 0.727% of 5,500,000 km², currently centralizes the bottom of the supply chain of many different corporations worldwide. That should be repeated for emphasis: that tiny geographic location of 40,000 km² centralizes the bottom of the supply chain of all hardware production that encompasses some kind of battery as a component.
Now that the magnitude of this context has been put into perspective, we shall proceed to the other topics.
But first, let’s restore the Amazon Rainforest to its default state so that fossil fuel tycoons don’t fictionalize too much.
Don’t dare to dream it; this beauty below is untouchable. It produces the oxygen of your grand grand grand… children.
24.3 Modern Slavery
Producing batteries to power the information of the age of information.
Chapter 3: "Modern Slavery in the Mines"
"The term 'modern slavery' is not an exaggeration. Miners, including children as young as seven, are often forced to work under the threat of violence or coercion. They are trapped in a cycle of debt and exploitation, with no escape from their dire circumstances. The lack of regulation and oversight in the cobalt mining industry allows these abuses to continue unchecked, perpetuating a system that prioritizes profit over human dignity."
"Miners are frequently exposed to hazardous conditions, leading to severe health problems such as respiratory diseases, musculoskeletal disorders, and skin infections. The lack of medical facilities and proper health monitoring exacerbates their suffering, creating a vicious cycle of poverty and illness."
It has been around a century and a half since most of the nations around the world abolished slavery, which was a byproduct of their colonization and expansion process.
Most of the Abolitionist Movement (19th century) took place amidst the breakthrough of the Industrial Revolution, Both came a little after the Enlightenment (18th Century), an intellectual and philosophical movement that took place in Europe, which, all around the world, influenced revolutions, the development of modern democratic governments and the formulation of fundamental human rights and the principles of liberty, equality, and justice.
New Imperialism
But sometime later, the late 19th and early 20th centuries saw a significant expansion of imperialism, often referred to as the "New Imperialism." Throughout this period, European powers expanded their empires, leading to the colonization of large parts of Africa, Asia, and the Pacific. This period saw significant geopolitical and economic changes as Western powers sought to exploit and control overseas territories.
While the abolition of slavery was a significant humanitarian achievement, it did not mark the end of imperialism. While traditional chattel slavery was largely abolished, New Imperialism often involved forms of forced labour and exploitation that were similar in nature to slavery.
Economic Exploitation and Forced Labor: European powers, as well as the United States and Japan, sought to expand their territories and control resources in Africa, Asia, and the Pacific. In many colonies, local populations were subjected to forced labour systems.
Indentured Labor: Many colonial powers turned to systems of indentured labour to meet labour demands. Workers from India, China, and other regions were transported to plantations and mines in various colonies under contracts that often led to conditions resembling slavery.
Continued Exploitation Post-Abolition: Even after the formal abolition of slavery, colonial administrations in many regions continued to exploit local populations through legal and extralegal means, maintaining systems of economic and social control that perpetuated conditions of severe exploitation.
By the 1960s and 1970s (Late 20th Century), most former colonies had gained independence, marking the end of New Imperialism as a dominant global force.
Corporate Imperialism
As we can see reported in Siddharta Kara’s research, slavery is still a practice that happens up until this decade. The most significant difference between the periods mentioned above and today is that while nations remain the primary actors in the global political system, the influence and power of multinational corporations (MNCs) have grown significantly in recent decades.
The growth in reach and power of corporations from the late 20th Century until now has no other unprecedented reference but one Dutch company that acquired quasi-governmental powers back in the 17th Century.
Known as VOC (Dutch East India Company), this “proto-global corporation” played a crucial role in the development of global trade, similar to how companies like Amazon and Alibaba revolutionized e-commerce and global logistics. The company traded a wide variety of goods, including spices (such as cloves, nutmeg, and pepper), textiles, tea, coffee, porcelain, and other valuable commodities and established a monopoly in trade routes and markets in the Indian Ocean and Southeast Asia.
It was also responsible for innovating with business practices never seen before. Through a Joint-stock ownership The VOC was the world's first publicly traded company, issuing stocks and bonds to raise capital. Promoting the first concept of corporate governance, with a structured organization with a board of directors (the Heeren Zeventien) overseeing its operations.
At its peak, the VOC was one of the wealthiest and most powerful commercial enterprises in the world. Some estimates suggest that it was the most valuable company in history when adjusted for inflation. In modern terms, its market capitalization would rival or exceed that of today's largest corporations, such as Apple, Amazon, or Microsoft. Some historical estimates place the VOC's value at over $7 trillion in today's money.
In the late 18th century, weighed down by smuggling, corruption, and growing administrative costs, the company went bankrupt and was formally dissolved in 1799. The government of the Dutch Batavian Republic took over its possessions and debt.
Corporate Hegemony
When we consider the magnitude of today's corporations' reach, it is very easy to acknowledge that some surpass governments in economic power, cultural influence, and human capital. Below are some considerations for us to sip like a warm tea.
Economic Influence: Some multinational corporations have revenues that exceed the GDP of many countries. Companies like Apple and Amazon have vast financial resources that give them significant economic clout. They can influence markets, trade, and investment flows, often shaping economic policies and regulations in countries where they operate.
Political Influence: Corporations often lobby and make political contributions to influence policy decisions in their favour. They exert pressure on governments by controlling jobs, technology, and capital. Sometimes, they can negotiate favourable terms for their operations, such as tax breaks or regulatory exemptions.
Global Reach: Multinational corporations operate in multiple countries, giving them a global reach that many individual nations do not possess. Their ability to move operations, capital, and resources across borders allows them to adapt and influence global economic conditions. They have extensive supply chains and networks that span the globe, giving them significant control over international trade and production and even more flexibility than governments.
But what does that mean exactly? That there are no such things as nations or governments anymore? Of course, there are, but let’s be frank: they don’t make all the calls anymore because they can’t outbid the global purchasing power of Megazord companies; they can’t limit their growth; they can’t hold their own regulations amidst the corporate influence and lobbies weighing down on them, and they can’t really ask for help because corporate lawyers are relentless. Governments in 2024 are make-believe.
LOL. Jokes aside, this concerning imbalance has already been discussed in Issue.11 - If we are to consider corporations in charge for a split second, that also means they are the ones to be held accountable for the negative outcomes in a) society (like modern slavery), b) the economy (like a recession) and c) the environment (global ebullition).
At the end of the day, the environment is the true thermometer behind all and every symptom we are currently facing.
First, when Mother Nature decides to manifest a wake-up call, she brings unprecedented natural disasters that can’t really be neglected; they must be addressed to mitigate their damages and impacts.
Second, when it comes to ESG, any good business executive knows that it goes beyond the mere concept of carbon emissions and is truly about a holistic approach to climate change. This encompasses protecting the local communities affected by business or industrial ventures through a human conscience and transparency before something as absurd as modern slavery happens in plain daylight.
Third, like a fundamental principle in biology called homeostasis, every organism, whether it is a construct (like society) or a person (like a body), is interconnected, which means that when an organ, like a liver, is sick from abuse of alcohol or is being exploited in extremely unethical, abusive, and toxic conditions, then this can only mean that the whole body becomes sick and weak like the very same organ that was treated as disposable or alien even though it is a part of the same body.
Fourth, we can only wonder: “Who’s responsible?” I won’t point fingers at Elon Musk and his Tesla factories of EVs with EV batteries made with Cobalt extracted from god knows where, if not from the only location where it is available.
Fith, but I can quote him on a much-needed statement. “If we just put a price on carbon emissions, the market will react in a sensible way. But because we don’t have a price on it, it is behaving badly”
Sixth, and finally… WHY GOVERNMENTS STILL DON’T TAX CORPORATION’S CARBON EMISSIONS?????
Vaarwel!
About the Author
Thiago Patriota
Made in 1996. Born & Raised Brazillian. Bachelor’s Degree in Advertising and Communication. Adept to autodidactism. Curious Soul. Published Author. Founder of Sentient.
That’s me in a nutshell, but you can learn more about Agency on the About page!