You want a real bull market? Cobalt, Leader 793% ytd Cobalt Demand to Soar +4,500% by 2030
OK, so unless you live under a rock, you know electric vehicles are the future of transportation. In the same way the combustion engine replaced the steam engine, the fully electric motor is the next evolution.
And you know EVs will depend on lithium-ion batteries to store energy. A fully electric vehicle without a lithium-ion battery is essentially a traditional car without a gas tank.
So invest in lithium, right?
No doubt. Next to cryptocurrencies, lithium is one of the hottest investments right now. Global X Lithium ETF (NYSEArca: LIT) is one of the best-performing ETFs of the year, gaining almost 70% with inflows of nearly $400 million.
But the rechargeable lithium-ion batteries everyone is speculating on aren't simply solid hunks of lithium. There are a few other critical metals needed to create rechargeable batteries that are very often overlooked.
And among them is one that might be a better investment than lithium itself.
I'm talking about cobalt.
Cobalt is one of the many metals with natural properties that will react with lithium in a way needed produce rechargeable batteries. It's used in the electrodes of lithium-ion batteries.
But forget the science or engineering behind it... the demand for cobalt is set to absolutely soar due to the EV revolution. In fact, between now and 2030, forecasts show a +4,500% surge in demand for cobalt. And for investors today, that spells out the promise of massive returns.
Cobalt is actually used in many rechargeable batteries for several different consumer products. In fact, there's no doubt you have some in your house right now. But while a laptop might have about an ounce of cobalt in it, an average EV battery contains over 30 pounds of the stuff. So the industry is going to need every ounce it can get its hand on.
But for manufacturers of EV batteries, securing cobalt resources poses a bit of an issue...
Global EV Demand
image: https://images.angelpub.com/2017/47/48608/ev-demand-1117.png
You see, most of the world's cobalt resources are located in one single country: Democratic Republic of Congo.
By some estimates, there are over $20 trillion worth of cobalt resources in the DRC. And today, over 50% of the global supply currently comes from the country. But that's a growing problem.
https://www.energyandcapital.com/articles/cobalt-demand-to-soar-4500-by-2030/6157