Since the beginning of 2021, prices for cobalt have risen sharply. Somewhat lower prices are the order of the day in the short term.
The growth in demand for the raw material cobalt is enormous. The current price pressure has come from a slowdown in electric vehicle demand in China. This is due to the Covid 19 closures. However, experts are fairly unanimous that this disruption is only temporary. In the medium term, they therefore expect an attractive demand outlook. This is because the lockdowns will also come to an end in China and supply chains will visibly normalize. Production is currently growing in Indonesia and the Democratic Republic of Congo. Congo is still considered a problematic production country. Last year, cobalt demand increased by more than 18 percent. This was due to the strong market for lithium-ion batteries. This development will also continue due to climate change and the increasing acceptance of electric vehicles and will probably gain even more momentum. In the long term, global demand for cobalt is forecast to grow by around 12 percent per year.
Whether the supply of cobalt can keep pace with the growing demand is still questionable. There are also political and operational risks in the industry. As the Cobalt Institute recently stated, the cobalt market will be in deficit from 2025. Prices will also remain high to incentivize further investment and prevent larger deficits. Cobalt, as an important raw material of the future, is particularly attractive when it does not come from Congo.
This is the case with Canada Nickel Company and its Crawford nickel-cobalt-sulfide project. The project is located in Canada.
There is also cobalt in Finland at Mawson Gold's - https://www.youtube.com/watch?v=CV7pfLIZadQ - 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/
The growth in demand for the raw material cobalt is enormous. The current price pressure has come from a slowdown in electric vehicle demand in China. This is due to the Covid 19 closures. However, experts are fairly unanimous that this disruption is only temporary. In the medium term, they therefore expect an attractive demand outlook. This is because the lockdowns will also come to an end in China and supply chains will visibly normalize. Production is currently growing in Indonesia and the Democratic Republic of Congo. Congo is still considered a problematic production country. Last year, cobalt demand increased by more than 18 percent. This was due to the strong market for lithium-ion batteries. This development will also continue due to climate change and the increasing acceptance of electric vehicles and will probably gain even more momentum. In the long term, global demand for cobalt is forecast to grow by around 12 percent per year.
Whether the supply of cobalt can keep pace with the growing demand is still questionable. There are also political and operational risks in the industry. As the Cobalt Institute recently stated, the cobalt market will be in deficit from 2025. Prices will also remain high to incentivize further investment and prevent larger deficits. Cobalt, as an important raw material of the future, is particularly attractive when it does not come from Congo.
This is the case with Canada Nickel Company and its Crawford nickel-cobalt-sulfide project. The project is located in Canada.
There is also cobalt in Finland at Mawson Gold's - https://www.youtube.com/watch?v=CV7pfLIZadQ - 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/
