This is the metal driving li-ion’s high cost far more than lithium itself.
Cobalt acts as the negative cathode of a lithium battery, and makes up a much larger portion of the battery by volume.
And it is a lot harder to get than lithium.
This is because the metal is largely mined as a byproduct of other metal mining operations. Because of this, there are a limited number of mines that safely and reliably produce the metal.
That puts the world’s supplies in a pretty risky position…
The threat of losing product production capacityit’s real.
The vast majority of the world’s cobalt supply comes from the Democratic Republic of Congo. Last year, the region produced 66,000 tons of cobalt. The next-largest producer, China, followed with just 7,700 tons for the year.
This means that more than half of the world’s supply of cobalt comes out of a single country… one that’s notorious for its violent domestic disputes that put businesses in constant danger, and make investment in the industry difficult to say the least.
Of course, there are always better options if you know where to look.
Keith Kohl is finalizing his latest report on just where investors should be turning their attention to instead.
(Spoiler alert: our neighbors to the north are right behind China in the race for cobalt supply!)
Cobalt is thousands of dollars more expensive than lithium…
With lithium battery use growing all the time, you’d better believe that gap is about to get even wider.
The success of cobalt, the least-discussed commodity ever, could offer early investors gains to rival what we’ve already seen in lithium.
And who wants to let that kind of money pass them by?
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