StockPimps69 wrote: Soon fully electric motors will replace the combustion engine the same way the electric light bulb replaced the oil lantern. And today's investors will be the beneficiaries of major gains. Now, you may know that the electric vehicle revolution can't happen without lithium. That's of course because lithium is the main component of the lithium-ion batteries needed for EV power storage.
And you've probably heard a lot about lithium in the past few years as a result. But there's one other strategic metal that will be absolutely necessary for the revolution: cobalt.
In short, this silvery-blue metal is used in battery cathodes to improve battery life, and therefore increases an electric vehicle's driving range. And, of course, consumers are always going to want better mileage.
But there's a big problem with cobalt resources...
Most of the world's cobalt resources are located in geopolitically unstable regions, like the Democratic Republic of Congo. Time and time again, we've shut down corrupt governments or taken over such resources. And with the demand for EV growing like wildfire, auto manufacturers are now racing to secure supplies of cobalt from anywhere they can.
Reuters recently reported that Volkswagen secretly submitted proposals to cobalt providers to supply the metal for up to 10 years.
In a bid to pull market share from Tesla, Volkswagen had previously said it plans to invest some $24 billion in EVs by 2030 and will produce 3 million zero-emission vehicles a year by 2025. And it will need all the cobalt it can get its hands on.
The demand for cobalt is expected to skyrocket in the coming years due to the EV revolution. And miners of this material are going to soar.
My colleague Keith Kohl is all over the cobalt story right now. He's ahead of the game with several cobalt miners and explorers already in his portfolios. And he's discovered many with cobalt projects outside of the unsafe regions.
Right now, the cobalt story is flying under the radar. But that won't last.