TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Tesla just activated its battery gigafactory, and China is moving to hoard the world’s cobalt supplies at the same time that Trump promises a military build-up that can only happen with the precious metal. This all means supply panic for everything from the electric car break-out to the military industrial complex.

Right in the middle of this we have small-cap North American explorers—our new potential barons-in-the-making—in whose hands our energy revolution now lies.

China is going to spend a massive US$360 billion through 2020 on renewable power sources as it seeks to dominate what is one of the fastest-growing industries in the world—and it will need a huge amount of cobalt to pull this off. If China starts hoarding global cobalt supplies, we’ll be looking at another phase of cobalt supply panic.

Cobalt is also a highly strategic material—it defines our defensive capabilities, and Donald Trump is now playing with yet another executive order to boost the military, and military spending.

For cobalt, we’ll be looking at the only major venue left under control for new supply—Canada, the #3 cobalt producer in the world.

It’s a brilliant set-up for small-cap companies like LiCo Energy Metals (TSX:LIC.V; OTCQB:WCTXF), which is staking out lucrative claims uniquely for both cobalt and lithium.

LiCo is one of the fastest-moving new small-cap explorers on this tight supply scene. It’s pinging investors radars not only with its hungry lithium acquisitions in Nevada and Chile, but also with a unique primary cobalt in Ontario, which means it’s a pure cobalt play, and not simply a by-product of nickel and copper.  

The company has stepped into an exploration world that offers three highly attractive scenarios for investors: 1) grabbing market share on two high-demand metals; 2) low-cost resource definition; and 3) near-term production.

Sitting on the highest grade of lithium in the world, in Chile, and carving out new primary cobalt supply in Canada to meet soaring demand, this small-cap company is set to play a key role in the emerging energy revolution.

3 reasons to keep a close eye on LiCo (TSX:LIC.V; OTCQB:WCTXF):

#1 Cobalt is Scarce and Supply is Elusive

The battery industry currently uses 42 percent of global cobalt production. The remaining 58 percent is used in diverse industrial and military applications—and the two sides are going to find themselves competing for dwindling supply.

Companies like Tesla (Nasdaq:TSLA?) and Panasonic need reliable sources of the metal, and the supply chain is anything but.

Around 97% of the world’s cobalt supply comes from what is largely an afterthought—as a by-product of nickel or copper mining—it becomes clear that answering an imminent spike in demand will be challenging at best.

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