Cobalt Following the Footsteps of Lithium in Demand for New Battery Technology
LOS ANGELES, January 23, 2018 /PRNewswire/ --
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USA News Group [http://usanewsgroup.com ] - Like its predecessor lithium, cobalt is feeling the impact of the Electric Vehicle (EV) revolution, which is driving demand and escalating the prices of both of these much sought after minerals.
Cobalt companies are focusing on developing new sources of cobalt including eCobalt Solutions (OTC: ECSIF) (TSX: ECS), Katanga Mining Limited (OTC: KATFF) (TSX: KAT), Fortune Minerals Limited (OTC: FTMDF) (TSX: FT), and Cruz Cobalt Corp. (OTC: BKTPF) (TSX-V: CUZ).
The world is embracing the EV revolution, which is in turn fueling a boom in the metals mining industry. Cobalt, which has been a mostly obscure metal, is growing in demand as electric vehicles push the demand for new and better battery technology.
Since about 65% of the world's cobalt comes from the Democratic Republic of Congo (DRC) , a region notorious for child labor violations, ethics in cobalt sourcing is a major concern.
Despite that fact, in just one year, the price of cobalt has increased nearly 230%.
Of the producers, miners are seeing their share prices rise based on the increased demand including eCobalt Solutions (OTC: ECSIF) (TSX: ECS), Katanga Mining Limited (OTC: KATFF) (TSX: KAT), and Fortune Minerals Limited (OTC: FTMDF) (TSX: FT).
One Canadian junior miner Cruz Cobalt Corp. (OTC: BKTPF) (TSX-V: CUZ.V), has moved to resolve the issues related to DRC mining of cobalt by focusing completely on North American cobalt projects instead.
COBALT
Cobalt is one of several materials becoming popular in the manufacture of new rechargeable power sources. For instance, electric vehicle manufacturers are finding new opportunities to leverage the benefits of cobalt in their rechargeable batteries.
At present, just over 40% of the cobalt production is used in Lithium-ion cells.
Cobalt is also found in an array of other products, such as magnets, pigments, and other industrial and military uses.
In the new era of batteries, cobalt is preferred because it has a high energy density. This lends to the longer run time that consumers prefer when it comes to their smartphones, laptops, and other devices.
Needless to say, the demand for cobalt is rising rapidly.
One of the biggest reasons that the market has risen is the electric car boom. In fact, investors are jumping into this market head first in anticipation of the heightening demand.
One challenge that has been hard to overcome is the relative scarcity of sources for cobalt in the natural world.
COBALT SOURCES LIMITED
Not only are investors looking ahead to heightening demand, but they're also aware of potential shortages.
Cobalt prices have consistently risen with the demand, showing a strong market. Over the next few years, it's projected that 75% of lithium-ion batteries will include cobalt. For electric vehicles, this means extended ranges between charges.
Around the world, people have seen cobalt used as a superalloy for space vehicles, turbines, rocket engines, and more. With more than half of the total supply of cobalt located in the DRC, and the squandering away of resources by others, many have anticipated that a shortage is going to take place.
Statistics also show that electric vehicles will continue to boom. In fact, global car sales around the world are expected to rise by 50% by 2050, and electric vehicles will account for nearly half of those.
CRUZ COBALT TURNS TO NORTH AMERICA
Cruz Cobalt is one of the innovative junior mining companies taking a different approach to tackle the difficulties of cobalt sourcing.
That smaller company has strategically acquired 7 cobalt projects in Canada (BC and Ontario), one in Idaho, USA, and another in Montana, USA-all of which are very mining-friendly jurisdictions, with no mining issues regarding child labor whatsoever.
On its four Ontario cobalt prospects Cruz recently engaged airborne surveys, which amassed additional data to uncover new cobalt targets. In total, the four prospects cover 8,725 acres, all of which are near the city of Cobalt, Ontario.
Cruz has already mobilized crews and commenced work programs on its Idaho Star Cobalt Prospect in Idaho, as well as its Chicken Hawk Cobalt Prospect in Montana-both 100%-owned by Cruz.
The company's War Eagle Cobalt Prospect in British Columbia, Canada spans 4,935 acres, and covers a past producing mine. Cruz has plans to start operations on the project shortly.
Based on these promising prospects, Cruz is a likely participant that can quickly move into a producer's role well in time to service the new demand for cobalt.
NEW SUPPLIES PROVIDING OPTIONS
The green energy offered by cobalt will continue to be leveraged as battery technology evolves over the coming years. New uses for cobalt will determine the future of the metal's market, and new resources will likely come into play based on expected shortages.
Electric vehicle manufacturers are working to create new options to their current key mineral component. But cobalt remains a viable staple in their growth.
Cobalt certainly isn't the first battery metal to see a shortage. Lithium's demand, for instance, has stripped the supply and costs have continuously risen.
What remains certain is the fact that the industry will need to look at new geographic regions and rely on new companies like Cruz Cobalt to fill the widening gap and keep ethical supplies of cobalt flowing.
POTENTIAL COMPARABLES
eCobalt Solutions (OTC: ECSIF) (TSX: ECS)
eCobalt Solutions Inc. engages in the exploration and development of mineral properties in Canada, the United States, and Mexico. It primarily explores for base and precious metals, and uranium, as well as copper, gold, silver, lead, and zinc deposits. The company owns 100% interest in its primary asset, the Idaho Cobalt project that includes a mine/mill site located in Lemhi County, Idaho, producing battery grade cobalt salts for rechargeable battery and renewable energy sectors. The company was formerly known as Formation Metals Inc. and changed its name to eCobalt Solutions Inc. in August 2016. eCobalt Solutions Inc. was founded in 1988 and is headquartered in Vancouver, Canada.
Katanga Mining Limited (OTC: KATFF) (TSX: KAT)
Katanga Mining Limited, through its subsidiary, Kamoto Copper Company SA, engages in the copper and cobalt mining and related activities in the Democratic Republic of Congo. It is involved in the exploration, mining, refurbishment, rehabilitation, development, and operation of the Kamoto/Mashamba East mining complex; the Kamoto Oliveira Virgule copper and cobalt mine; T17 open pit and T17 underground mines; various oxide open pit resources; the Kamoto concentrator; and the Luilu metallurgical plant. The company is based in Whitehorse, Canada. Katanga Mining Limited is a subsidiary of Glencore International AG.
Fortune Minerals Limited (OTC: FTMDF) (TSX: FT)
Fortune Minerals Limited explores for and develops specialty metals, base metals, and precious metals in Canada. The company explores for gold, cobalt, bismuth, copper, silver, lead, and zinc deposits. It primarily holds 100% interest in the NICO gold-cobalt-bismuth-copper project located in the Northwest Territories. Fortune Minerals Limited was founded in 1988 and is headquartered in London, Canada.
For a more in-depth look into CUZ you can view the in-depth report at USA News Group: http://usanewsgroup.com/2017/12/18/bmw-throws-fuel-on-cobalt-price-fire-well-need-10x-as-much
Article Source: USA News Group http://usanewsgroup.com info@usanewsgroup.com
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