The worth of cobalt as a commodity has increased significantly over the past few years.
Why Invest in Cobalt
Commodity Prices
There will be an increase in commodity prices as the following factors come into play: cobalt prices have reached a historical low in real value, nickel warehouse levels have been cut in half over the past year, and there are anticipated supply constraints and demand growth on the horizon. The availability of cobalt is limited due to the fact that 99% of it is extracted as a secondary product. Additionally, the high cost of capital serves as a hindrance for other potential players to enter this market.
The Electric Vehicles Technology
The development of electric vehicle technology has resulted in a lower total cost of ownership than petrol vehicles in different parts of the world, even after subsidies. Some countries have approved the performance of electric vehicles making them the leader in electric vehicle adoption. As a big and fast-growing car market, the overall commitment to electric vehicles is significant.
Battery Chemistry
Battery science relies on cobalt as it is crucial for maintaining thermal stability and energy density. In case of a shortage of cobalt, there will be a need to reduce the use of cobalt cathode chemistries. However, it is important to note that adopting new technologies takes a significant amount of time.
