8/16/2023 0 Comments First cobalt stock![]() Most of this production came from the Democratic Republic of the Congo (“DRC”). Glencore PLC (LSE: GLEN | OTC: GLCNF | HK: 805) is the leading global producer of cobalt with production of 43,800t in 2022. Sources: IEA and Trend Investing The leading cobalt miners in 2023 Trend Investing vs IEA demand forecast for EV metals The cobalt market is currently quite balanced with a mild surplus as demand from electronics remains weak however, Trend Investing forecasts that by 2027 onwards this will become a growing deficit, assuming EVs sales continue to grow strongly.Īs a result of the above, the cobalt price ( US$15.20/lb) and many of the cobalt miner’s stock prices are depressed allowing a more attractive entry point for long-term investors into the sector. Nonetheless, a 5.7x increase is still very significant, especially when we consider that cobalt has the most difficult supply chain of all EV metals. The reason it is lower than the IEA is due to the emergence of lithium-iron-phosphate (“LFP”) batteries which do not use cobalt. Our Trend Investing forecast is for a 5.7x increase from 2020 to 2037. The main driver is the forecast surge in sales of EVs. In 2021, the International Energy Agency forecasted that cobalt demand could grow between 6x to 21x from 2020 to 2040 depending upon various scenarios. The EV boom is causing cobalt demand to surge higher. To meet growing customer demand, Electra announced back in June, 2022, that it is evaluating a second refinery in Quebec by 2025-26, which could source cobalt Electra’s Idaho cobalt and copper project.Cobalt is a key component of the lithium-ion (“Li-ion”) battery used in electronics and many types of electric vehicles (“EVs”). Financial terms of the agreement have not been disclosed. In addition to the supply agreement, Electra and LG Energy Solution have agreed to co-operate and explore ways to advance opportunities across North America’s EV supply chain, including securing sustainable sources of raw materials. “This agreement between Electra and LG Energy Solution will see Canadian critical mineral resources and Canadian workers helping to build the car of the future,’’ he said.Įlectra will supply 1,000 tonnes of cobalt contained in cobalt sulfate product in 2023 and a further 3,000 tonnes in each of 20 under an agreed pricing mechanism. “Today’s announcement is great news for Canada,’’ said Francois-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry. “LG Energy Solution is a global leader in the electric vehicle supply chain, and we are delighted to sign our first strategic supply agreement with such an important player in the lithium-ion battery market,’’ said Electra CEO Trent Mell. ![]() ![]() On Thursday, Electra said Cobalt sulfate provided under the term of the contract with LGES will be sufficient to supply up to 1.5 million full electric vehicles. Backed by a $10 million investment from the Ontario and Canadian governments, the recommissioned refinery is expected to produce 5,000 tonnes per year.īut after recent talks with potential customers in the auto and battery manufacturing sector, First Cobalt has elected to expand the refinery into a Battery Metals Park capable of supplying a variety of materials for the electric vehicle market. At the time of the transaction, First Cobalt described the facility as the only permitted cobalt refinery in North America capable of producing battery materials.Īs part of the deal, First Cobalt also picked up the Iron Creek Cobalt property in Idaho, one of only two advanced primary cobalt resource projects in the U.S., and a potential future source of feed for the Ontario refinery.įirst Cobalt initial plan was to recommission the refinery as a producer of cobalt sulphate, using third party hydroxide feedstock sourced from cobalt mines in the Democratic Republic of Congo. First Cobalt acquired the facility three years ago when it bought US Cobalt Inc. The refinery is in the late stages of commissioning and is expected to commence operations in the spring of 2023. That material will be supplied from a cobalt sulfate refinery located in Temiskaming Shores, near the Sudbury, Ont., Nickel Basin. ![]() The shares are currently trading in a 52-week range of $7.65 and $3.27.Įlectra, a company previously known as First Cobalt Corp, has pledged to supply LGES with 7,000 tonnes of battery grade cobalt from 2023 to 2025. said Thursday it has signed a three-year deal to supply battery-grade cobalt to LG Energy Solution (LGES), a leading manufacturer of lithium-ion batteries for electric vehicles.Įlectra shares advanced sharply on the news, rising 29.1% or $1.15 to $5.10 on volume of 129,770. ![]()
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