Cobalt Market Economics: Batteries Lead the Way


Why Cobalt?


The Changing EV Market

Supply Chain Issues

“The majority of the cobalt is heading straight to China.
Their global hold is huge.”
– CRU 2016

“The US and China have identified cobalt as a strategic metal and are stockpiling cobalt”
-USGS 2016

“While the occasional [analyst] questions the availability of enough lithium or flake graphite to satisfy soaring demand from the battery industry, everybody has overlooked or ignored the most critical mineral constraint – Cobalt. It’s a truly gargantuan challenge. A Gigarisk!”
Source: investorintel.com, March 2016

China, No.1 and Growing

  • China is pushing for an aggressive California-style Zero Emission Vehicle (ZEV) program:
    8% of all cars sold in China by 2018 will be EV, and 12% by 2020
  • Given a 1% EV adoption rate in China today, that target translates to a 12x increase in the number of electric cars to be sold in China by end of the decade
  • US government policy changes on renewables and energy storage is likely to be immaterial to global growth projections

Cobalt: Supply and Demand