Demand for Electric Vehicles Spells Big Gains for Australian Cobalt Miners

New research suggests that battery electric vehicles (BEVs) will overtake standard combustion driven vehicles before 2050.

At this point, the fleet of BEVs will number one billion. This surge in BEVs will come on the back of their ability to generate a profit per unit in 2029.

At the same time, Morgan Stanley sees gas powered cars returning a loss one year before this in 2028.

The rise of electric vehicles could see cobalt stocks take off in the years to come.

A critical component of any BEV is the battery which stores the electricity that it runs on.

The cutting edge batteries used in Tesla vehicles are based on lithium-ion technology. These are the batteries that are found in laptops and phones.

But what many people forget about lithium-ion batteries is that they require a significant amount of cobalt to make.

Cobalt is the most expensive metal involved in making these batteries.

One strategic mineral could be set to make a roaring comeback this year. To find out why this unloved base metal could already be beginning a major turnaround, and the best-placed companies to benefit, download your FREE report here.

Cobalt making strong gains amid political uncertainty

As you can see below, cobalt has performed well over the past five years:

Cobalt Price Jan 2013-October 2018

Source: infomine.com

It’s also very common in Australia compared to the rest of the world, with only the Democratic Republic of Congo (DRC) holding more.

The difficulty with extracting cobalt in the DRC however, is that the country is frequently politically unstable.

Australian cobalt miners set to benefit

Fears that the cobalt mined there is a product of conflict may lead battery producers to look to Australia as a more ethical source of the metal.

Adding to the potential demand for Australian cobalt, is the fact that the DRC is set to place a new 10% tax on all cobalt mined in the country.

So what does this all mean for the Aussie investor?

Well for starters, it could be a wise move to start looking at Australian cobalt miners.

Below is Aussie owned Collerina Cobalt Limited’s [ASX:CLL] performance for the last year, up 152%:Collerina Cobalt Limited Share Price Chart October 2017-October 2018

 

Gains such as this can be hard to find in the mining industry unless you know where to look.

Keep your eyes peeled for further updates on cobalt stocks over the coming weeks.

Regards,

Ryan Clarkson-Ledward,
For 
Markets & Money

PS: What’s the single resource most likely to benefit from the rise of electric cars, the spread of the ‘internet of things’ and our smartphone obsession? Read about ‘blue gold’ in this free investor report from controversial resources analyst, Jason Stevenson. Download your copy here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


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