THE COBALT OPPORTUNITY
Last year EV sales grew by about 60 percent worldwide. As battery costs continue to fall, demand for EVs will rise. Battery prices fell 35 percent last year and are on a trajectory to make unsubsidized electric vehicles as affordable as their gasoline counterparts in the next six years. Batteries make up a third of the cost of an electric vehicle and contain 15-20 percent Cobalt. (Source: Bloomberg)
Electric Vehicles
By 2022 Electric Vehicles (EVs) will cost the same as gasoline powered vehicles. By 2040, EVs will account for 35% of all new vehicle sales.
Mobile Electronics
Mobile electronics such as Smartphones, Laptops, Cameras, and Medical Devices all rely on Cobalt-containing Lithium-Ion batteries.
Smart Homes
Surge in uptake of lithium-ion batteries home/grid storage has caused strong Cobalt price gains in the past year.
One In Six New Cars Sold by 2025 Will Be Electric
Almost every sixth car sold in the world will be electric by 2025, according to a UBS global autos survey released Fall 2017. By the middle of the next decade, global sales of electric vehicles will hit 16.5 million, analysts led by Patrick Hummel said in the report, a 16 percent increase from the previous estimate. They predict electric vehicles will make up 16 percent of all car sales by then, up from a previous estimate of 14 percent.
Cobalt Is A Strong Performing Metal
$40.60/lb
May 2018 Price ($USD)
$43.32/lb
52 Week High ($USD)
+160%
2017 Price Increase ($USD)
+500%
5 Year Price Increase ($USD)
INDUSTRY OPINION
What The Analysts Say
“The refined cobalt market will fall into a 3,000 tonne deficit this year following seven years of overcapacity and oversupply. CRU anticipates prices to increase onward into 2017.”
Edward Spencer,
CRU Group
“With this growth will come further disruption to the traditional market structures that have developed in cobalt over the last 30 years. In short, a new, more secure supply chain for the modern era will need to be created, a task that includes new mines, new refineries, and a more transparent supply chain.”
Andrew Miller,
Benchmark Minerals
“The shift to electric cars will come faster and in a more pronounced way, fuelled by the diesel demise in Europe, battery technology advancements and regulation in China and Europe.”
Patrick Hummel,
UBS
“Anybody who has cobalt outside the DRC is in a better situation because carmakers are very worried about their supply chains. The amount of cobalt being used in electric cars could easily double in the next eight to 15 years. Even in the most conservative assumptions, you’re looking at maybe a 20 percent gap between supply and demand for cobalt by 2025.”
Roger Bell,
Hannam & Parters
COMPANY UPDATES
Latest News
Our team is committed to creating value for its investors and stakeholders through developing best-in-class Cobalt projects. Aided by an experienced technical team, International Cobalt is making rapid progress towards this objective.
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