| Financial Times - June 14, 2021 Goldman Sachs has stepped up its trading in battery metal cobalt, latching on to one of the hottest corners of the commodities market as ... Goldman Sachs has stepped up its trading in battery metal cobalt, latching on to one of the hottest corners of the commodities market as carmakers transition to electric vehicles…The bank has been active in cobalt markets since last year, and has more recently dipped into physical purchases of the metal for the first time, according to people familiar with the matter…Carmakers need metals such as lithium and cobalt for batteries, and some source it directly from miners. But they are open to potentially painful price fluctuations…Prices are likely to continue rising quickly. To meet the goals of the Paris climate agreement, demand for cobalt is set to increase more than twentyfold by 2040, according to the International Energy Agency…At the moment, carmakers cannot easily hedge their exposure to battery metals such as cobalt since there is too little trading on exchanges such as the London Metal Exchange…Goldman, meanwhile, was providing hedging products to carmakers and in turn hedging its own exposure by holding physical cobalt, people familiar with its operations said. The bank declined to comment…The bank has become a key investor in the transition to electric cars. It invested about $1bn this week in Swedish battery company Northvolt, as part of a $2.75bn funding round. | | Argus Media - June 11, 2021 A US administration focused on climate change and a British host eager to plug its green credentials will lead to a sharp focus on vehicle ... could interrupt the high-capacity battery supply chain. The first is the possibility of Chinarestricting exports of cobalt, nickel, lithium Discussions in Cornwall this weekend are expected to centre around restricting internal combustion engine (ICE) vehicle sales, with Germany and the UK having already committed to banning new sales by 2030. Japan is currently targeting 2035, while France, Canada and the US plan to ban sales by 2040. Italy is the only member of the G7 that has yet to make a commitment on this front. The UK is expected to push for a multilateral agreement for 2030, ahead of its chairmanship of the COP 26 later this year…Individual members also have been ramping up their electric vehicle (EV) commitments ahead of the G7, with US and European administrations outlining plans that extend beyond just banning ICE vehicles…The New Atlantic Charter, released yesterday by the US and UK, affirmed both countries' commitment to climate goals, saying they will "prioritise" climate in "all of our international actions"…In May, US president Joe Biden announced a $174bn EV plan as part of a wider infrastructure package. He emphasised the building of a new EV industry in the US rather than exporting manufacturing abroad…The EV ambitions of the US administration are not in doubt, but what is less obvious is where the batteries and raw materials will come from. It is a problem common to all the G7 nations, but Europeans lately have invested heavily in regional battery technologies and raw materials supply, helping the continent catch up with China in terms of cell manufacturing…The US administration is waking up to the fact that the US is exposed to several potential risks, prompting Biden to order a review into supply chains for new technology that wrapped up this week. The resulting report underscores the challenges faced by the US in building its EV sector. "Currently, the US has limited raw material production capacity and virtually no processing capacity […] This current approach to the US supply chain exposes the downstream value chain to additional supply chain risk from the reliance on foreign inputs from the upstream value chain, especially the lack of domestic processing," it says…The report also highlights the geopolitical risks of not building an independent battery supply chain, warning of the danger of relying on potential political adversaries for industrial materials…"There are several geopolitical disruptions that could interrupt the high-capacity battery supply chain. The first is the possibility of China restricting exports of cobalt, nickel, lithium, graphite or finished anode or cathode materials, for each of which China has dominant processing capacity […] It is reasonable to expect that China could restrict exports of any or all of the battery supply chain materials it produces, due to trade tensions with the US or a simple prioritisation of domestic customers for its battery materials […] The US must secure a reliable supply base through both targeted international investments and a strong domestic supply base," it says…The report also warns that China could just as easily dump battery materials into the global market to reduce international competition because of its current advantages. | | Unknown - June 11, 2021 Automaker are being forced into operational roles in the mining sector, said Rho Motion's Adam Panayi on Friday. Automaker are being forced into operational roles in the mining sector, said Rho Motion's Adam Panayi on Friday…The managing director of Rho Motion recorded a Kitco Roundtable podcast with correspondent Paul Harris, Mining Audiences Manager Michael McCrae and editor Neils Christensen…To make electric vehicles, automakers are going to need a lot more cobalt, lithium, nickel and copper than is currently being mined…Panayi said large automakers getting into the mining business is "inevitable" since the magnitude of some of the special materials needed is nearly akin to building an "entire sector from scratch."…"You are going to need continuing investment in that market for [nearly] the next two decades in order to keep pace with the growth of EVs and other battery technologies," said Panayi…CLICK ON BLUE TITLE TO ACCESS PODCAST | |