Saturday, June 10, 2017

Cobalt price up 70% this year


Soaring demand in the battery manufacturing sector has sent the price of cobalt soaring to its highest level since 2008. So far this year, the price of the metal has jumped 70% to US$56,500 per tonne.

Cobalt has been a key ingredient in tires and smartphones. It has also been used to colour glass and ceramics.

However, now the metal, along with lithium is benefiting from its use in lithium-ion batteries that are used to power electric vehicles.

Roughly half of all cobalt bought or sold last year was used in rechargeable batteries. That is up from 20% from 2006.

I don't see demand for cobalt slackening in the near term. I am still trying to find the best way to play this trend. I am hesitant to buy the plethora of recently created "cobalt" companies that the promoters in Vancouver and Toronto are creating. Most of these companies have no real properties or managements.

Most of the cobalt comes as to market as a by-product of copper an nickel mining. Therefore you are talking about larger mining companies. In many cases the cobalt produced is just not large enough to really affect the company's results.


Anonymous said...

Hey, have you checked out the vanadium flow batteries they may be the future, in which case trying to find a great Vanadium deposit.

boubin2 said...

I have not checked this out. This could very well be the future. Somebody will have to come up with something as there is not enough cobalt to build what everyone wants with current technology.

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