Benchmark Mineral Intelligence Chief Data Officer Caspar Rawles has recommended that any investor interested in investing in cobalt look at copper and nickel companies that are mining or exploring for cobalt, “unless (they) are lucky enough to find a (junior with a) deposit that is primarily cobalt.” The second option is to invest in cobalt-focused companies. Typically futures trading is done by more sophisticated investors. Contracts range over a span of 15 months, allowing investors to make bets on the metal over varying time periods. These futures began trading in early 2010 and are quoted in US dollars per MT. The first option is cobalt futures, which can be found on the London Metal Exchange under the symbol CO. These circumstances have left many investors interested in cobalt, and there are two main ways to get exposure. What are the main ways to invest in cobalt? "Furthermore, the sheer absolute growth in EV sales will mean that EV-related cobalt demand will continue to accelerate in the years to come." “Despite the prevailing transition to lower cobalt cathode chemistries and the growing share of non-cobalt chemistries, the cobalt bearing (nickel-cobalt-manganese) chemistry will remain the dominant chemistry in the foreseeable future," said Andries Gerbens, a physical trader at Darton Commodities. Lithium-ion batteries are used in other electronics as well.
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As noted, the lithium-ion battery market will be a huge driver of that demand, with battery production rising due to the expected surge in EV purchases. It’s tough to say exactly how much demand will increase in the coming years, but many experts agree growth will be substantial. Because of that, these human rights groups believe that cobalt end users should be sourcing the metal elsewhere.Ĭobalt demand is also important to look at. Many DRC cobalt operations are dangerous, poorly managed and involve child labor. While cobalt is not a conflict mineral, some human rights groups are pushing for it to receive that designation. Cobalt is currently produced in about a dozen countries.Īs noted, cobalt from the DRC is facing increasing scrutiny.
Russia (8,900 MT) and Australia (5,900 MT) were the third and fourth largest, respectively. The DRC produced 130,000 metric tons (MT) of cobalt in 2022, far ahead of runner-up Indonesia’s 10,000 MT. The country also holds nearly half of global cobalt reserves, cementing its dominance. Most DRC cobalt comes from an area known as the Central African Copper Belt, which accounts for nearly half of cobalt output in the DRC. What factors impact cobalt supply and demand?Ĭobalt is mainly produced as a by-product of copper and nickel, with the DRC supplying the bulk of the world’s cobalt.
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