The iPhone maker is seeking contracts to buy several thousand metric tons of cobalt for five years or longer, Bloomberg reported, citing an anonymous source.
Cobalt prices have skyrocketed of late due to an expected growth in demand for electric vehicles powered by lithium-ion batteries.
"The move means Apple will find itself in competition with carmakers and battery producers to lock up cobalt supplies. Companies from BMW and Volkswagen to Samsung SDI Co. are racing to sign multi-year cobalt contracts deals to ensure they have sufficient supplies of the metal to meet ambitious targets for electric vehicle production," the report read.
Apple may end up deciding not to go ahead with a deal, the report said, citing another source.
Apple was not immediately available for comment outside regular business hours.
© Thomson Reuters 2018