Cobalt could become scarce

Cobalt is extracted from nickel and copper ores. Various steps are necessary to extract the cobalt. Congo, which has just been hit by devastating floods, is the largest producer of cobalt. However, mining conditions are not at their best. In the USA, the Inflation Reduction Act sets standards. Car manufacturers must ensure that by 2024 around 50 percent of the critical metals used in EV batteries come from North America or the USA’s allies. Currently, the recycling rate is growing, yet cobalt may slip into deficit as a metal in demand, although it doesn’t look like it will now. There will also be an election in Congo next year, and mining is likely to be a major issue. Whatever happens with cobalt, demand is estimated to grow nine percent annually. So new mines outside of Congo would be good, but junior mining companies may have trouble financing their projects this year, as cobalt is suffering in price right now. This would also tighten supply.

It is the global net-zero transition that makes commodities like cobalt the metal in demand. Last year, Chinese lockdown measures led to a slump in portable electronic devices. Likewise, monetary policy in the U.S. and the energy crisis caused by Russia’s war of aggression had an impact. All these effects should weaken this year. And the increasing number of electric cars will also ensure more cobalt demand and thus ultimately higher prices, because it is a longer-term trend.

Cobalt in addition to nickel is held by Canada Nickel Company – https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ – at its flagship Crawford project in Ontario.

There is also cobalt in Finland, namely at Mawson Gold’s – https://www.commodity-tv.com/ondemand/companies/profil/mawson-gold-ltd/ – Rajapalot gold-cobalt project.

Current corporate information and press releases from Mawson Gold (- https://www.resource-capital.ch/en/companies/mawson-gold-ltd/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).

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