By Jeb
I am behind in my publishing schedule due to the unexpected Hurricane Irma and the onset of the Jewish New Year. Now that has passed I plan on publishing content on a more regular basis with update CEO interviews and new charts
For some time now, I have been one of the early proponents of investing in cobalt because of its crucial role in lithium-ion batteries used in electric vehicles.
Recently, I learned that major automaker Volkswagen is now looking to secure long-term supplies of cobalt, as they are the latest manufacturer to get on board with the rapidly emerging electric vehicle market. Volkswagen is the largest automaker in the world and, like Tesla, they are keen to carve out a piece of the electric vehicle market. The company plans to introduce over 80 electric vehicles in the coming years as part of a goal to sell more then three million battery-powered vehicles a year by 2025. All I can say is good luck because it won’t be easy to secure supply of cobalt.
More broadly, governments around the world are enacting stricter regulations against pollution – a move that will drive major auto manufacturers into the electric vehicle market as well. In fact, numerous countries have declared their intention to stop the sales of gasoline-powered vehicles altogether in the near future.
Demand for cobalt reflects its critical role of extending battery life of lithium-ion batteries, giving manufacturers the ability to offer batteries that can last nearly a decade. As a result, cobalt’s price has tripled over the past year and a half moving from $10 to $30 US per lb.
Moreover, all of this demand brings issues with the cobalt supply chain into focus. Currently, much of the world’s supply comes from the Democratic Republic of the Congo – a geopolitically unstable region plagued with human rights violations in their mining industry (including child labor). As well, they cannot produce enough cobalt to meet projected demand placing American and European manufacturers under pressure to secure supplies elsewhere.
How do we profit off of this paradigm shift from internal combustion engines to electric-powered vehicles? Invest in cobalt exploration companies with top management teams, financial backing, and promising cobalt assets.
For months I highlighted #firstcobalt $FCC.V $FTSSF, whose goal is to create the largest pure play cobalt development company. They are on their way of doing that, amassing 3k hectares of land in Cobalt, Ontario, including a former, high-grade cobalt mine that produced over 3 million pounds of cobalt.
Recently, $FTSSF announced news which should really draw attention to the upside potential of their project. They took samples from the historic muck piles and tailings of a past producing mine on their property, and the assays showed extremely high-grade cobalt.
Trent Mell, President & Chief Executive Officer, commented: “This is now a high priority target that will require a more detailed drill plan and more initial holes compared to the on-going drill program at the Keeley and Frontier mines. There are real benefits to sampling mined material previously viewed as waste …read more
Source:: Gold Stock Trades.com
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