Cobalt’s 3 Month Price Hike a Sign of Things to Come? Voici un article tres interessant de Anthony Milewski, president du conseil d'administration de Nickel 28 Capital :
https://investingnews.com/daily/resource-investing/battery-metals-investing/cobalt-investing/anthony-milewski-cobalt-price-hike-sign-things-come/ Voici quelques extraits :
Previous price rallies have been predicated mainly on an approaching wall of anticipated future demand. However, soaring demand for these batteries’ use in electric vehicles (EVs) means we have now reached the point at which the price growth is based on actual demand and not projections and expectations like in the past.
As EV production edges closer to cost parity with legacy internal combustion engine-driven vehicles, demand growth is not expected to drop off any time soon. It’s also worth noting that EVs are not the only demand drivers. Cobalt is critical in developing superalloys for the aerospace and medical industries. While the COVID-19 pandemic had essentially scalped demand from the aerospace sector, this will become an added cobalt price booster once airplane manufacturing ramps up in a post-COVID economy.
Add to the mix renewed generalist investor appetite for mining and metals as a favorable asset class, and only a handful of dominant players in what is in fact a small market, and one essentially has a perfect storm underpinning the metal’s price trajectory over the foreseeable future.
Then we have the geopolitics element to consider. The raw material is exported to China, which holds a dominant position when it comes to processing cobalt concentrates into usable materials for batteries. However, the country prioritizes these value-added chemicals for domestic use, leaving the rest of the world without reliable supplies.
In short, cobalt’s price trajectory is based on more sustainable factors this time around. As the world increasingly focuses on electrifying transport and invests heavily in the new green economy, cobalt, along with other battery metals, is looking at a comfortable ride upwards.