Battery Metals Index, composed of 10 lithium and 10 cobalt companies, has rallied 56% over the past year, with some company valuations surging more than 100%. With an implied shortage of lithium and cobalt in the market, we examine which producing companies are best positioned to rise from this battery frenzy.

Written by Alex Cutulenco and Jassie Bhathal

While automakers worldwide are racing to produce electric vehicles (EVs), battery metals continue to climb as both lithium and cobalt see ever-increasing demand. The forecasted under-supply of battery metals is further complicated by conflict-ridden Congo, which supplies nearly half of the world’s cobalt, as it has recently been under scrutiny for inhumane working conditions and employing child labour.

Industry Highlights

  • …Spot prices for Cobalt have been on an upward trajectory since the start of 2017, surging 66% from US$15.50/lb to over US$25/lb today.
  • Demand for the metal is expected to proliferate with the acceleration of Tesla’s Model 3 production and other EVs, as well as demand for energy storage solutions.
  • The rally behind Cobalt has been further supported by increasing investor excitement and a fragile supply chain; nearly half of global cobalt supply is produced in the unstable Democratic Republic of Congo (DRC). High-profile funds in Switzerland and China have also been buying physical stocks of cobalt to lure investors, which has triggered panic buying by cobalt users along the manufacturing chain.
  • The near-term shortage of cobalt has created bubble-like conditions, which are likely to dissipate once more supply comes online…
  • Notable Performers

    eCobalt Solutions Inc. (PINK:ECSIF /TSX:ECS)

    eCobalt Solutions Inc. (“eCobalt”) is a mineral exploration and development company with properties in Canada, the United States, and Mexico. eCobalt’s stock price has more than doubled year to date, as it received financing to develop its primary asset, the Idaho Cobalt Project (ICP), which is the only near-term and fully permitted primary cobalt deposit in the United States.

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