Fortune Minerals Ltd T.FT

Canaccord est. up to US$46BN in investment needed to fund Co

[Allman]

A sharper focus on a secure supply chain could spell good news for companies developing projects outside of the Democratic Republic of the Congo and China, which are currently two of the largest global producers of the critical metal. ...
In a note to clients, the analysts said: “We anticipate EV demand to grow at 9% compound growth rate out to 2030. As the price of cobalt rises the risk of substitution exists, however, we believe that in traditional markets much of the substitution has already been done and in EV markets limitations on chemistries will mean that, for energy-dense batteries, cobalt will be required to a degree into the future.”
What’s more, the analysts said they believe the responsible sourcing of cobalt is becoming increasingly important as environmental, social and governance issues return to the spotlight.
“Recently we have seen an influx of media attention on responsible sourcing of cobalt, in particular on artisanal mining from the Democratic Republic of the Congo (DRC),” the analysts added.
They noted that the issue is “complex,” with little new information being presented that has not been seen during the previous price cycle. This time around, however, the analysts believe there are higher levels of sensitivity by end-users.
“Following the Russian invasion of Ukraine we have also seen an increased focus from governments wanting to shore up local production and refining capacity,” the Canaccord analysts said. “We believe this will translate to projects ex-DRC/China receiving preferential treatment and funding by governments.” ...
“Governments across the globe are now awake and they've realized that security of supply, something that we've been saying for a while now, is vital to their nation's economic and strategic wellbeing,” Smith told Proactive recently.
“They're now prioritizing this with funding and promise to permit in support of the facilitation of localized, or regionalized, electric vehicle materials supply chain. I’m not shy in saying that more needs to be done, not just with government but at all levels, but I'll emphasize that it all starts with investment," he added.

https://ca.paidpromotionalmessages.com/companies/news/983614/canaccord-estimates-up-to-us-46b-in-investment-needed-to-fund-cobalt-production-to-meet-anticipated-demand-983614.html