Cobalt is used in electronic devices and electric cars. The increasing demand requires new mines.
Cobalt is extracted from nickel and copper ores. Various steps are necessary to extract the cobalt. Congo, which has just been hit by devastating floods, is the largest producer of cobalt. However, mining conditions are not at their best. In the USA, the Inflation Reduction Act sets standards. Car manufacturers must ensure that by 2024 around 50 percent of the critical metals used in EV batteries come from North America or the USA's allies. Currently, the recycling rate is growing, yet cobalt may slip into deficit as a metal in demand, although it doesn't look like it will now. There will also be an election in Congo next year, and mining is likely to be a major issue. Whatever happens with cobalt, demand is estimated to grow nine percent annually. So new mines outside of Congo would be good, but junior mining companies may have trouble financing their projects this year, as cobalt is suffering in price right now. This would also tighten supply.
It is the global net-zero transition that makes commodities like cobalt the metal in demand. Last year, Chinese lockdown measures led to a slump in portable electronic devices. Likewise, monetary policy in the U.S. and the energy crisis caused by Russia's war of aggression had an impact. All these effects should weaken this year. And the increasing number of electric cars will also ensure more cobalt demand and thus ultimately higher prices, because it is a longer-term trend.
Cobalt in addition to nickel is held by Canada Nickel Company - https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ - at its flagship Crawford project in Ontario.
There is also cobalt in Finland, namely at Mawson Gold's - https://www.commodity-tv.com/ondemand/companies/profil/mawson-gold-ltd/ - Rajapalot gold-cobalt project.
Current corporate information and press releases from Mawson Gold (- https://www.resource-capital.ch/en/companies/mawson-gold-ltd/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
Cobalt is extracted from nickel and copper ores. Various steps are necessary to extract the cobalt. Congo, which has just been hit by devastating floods, is the largest producer of cobalt. However, mining conditions are not at their best. In the USA, the Inflation Reduction Act sets standards. Car manufacturers must ensure that by 2024 around 50 percent of the critical metals used in EV batteries come from North America or the USA's allies. Currently, the recycling rate is growing, yet cobalt may slip into deficit as a metal in demand, although it doesn't look like it will now. There will also be an election in Congo next year, and mining is likely to be a major issue. Whatever happens with cobalt, demand is estimated to grow nine percent annually. So new mines outside of Congo would be good, but junior mining companies may have trouble financing their projects this year, as cobalt is suffering in price right now. This would also tighten supply.
It is the global net-zero transition that makes commodities like cobalt the metal in demand. Last year, Chinese lockdown measures led to a slump in portable electronic devices. Likewise, monetary policy in the U.S. and the energy crisis caused by Russia's war of aggression had an impact. All these effects should weaken this year. And the increasing number of electric cars will also ensure more cobalt demand and thus ultimately higher prices, because it is a longer-term trend.
Cobalt in addition to nickel is held by Canada Nickel Company - https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ - at its flagship Crawford project in Ontario.
There is also cobalt in Finland, namely at Mawson Gold's - https://www.commodity-tv.com/ondemand/companies/profil/mawson-gold-ltd/ - Rajapalot gold-cobalt project.
Current corporate information and press releases from Mawson Gold (- https://www.resource-capital.ch/en/companies/mawson-gold-ltd/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
