TSXV:SVG - Post Discussion
Post by
highper on Sep 21, 2020 11:40am
5G will be a major source of cobalt demand
| Unknown - September 21, 2020 LONDON (Reuters) - The need for larger rechargeable batteries and more energy storage for 5G technology is expected to significantly boost demand for cobalt over coming years and potentially pit the sector against electric vehicle makers. Larger batteries, using lithium cobalt oxide chemistry (LCO), are needed in 5G phones because the antenna, used to transmit and receive radio waves, need more power than those in 4G phones…Base station antenna for 5G also need significantly more power, putting pressure on power grids, necessitating the use of energy storage systems, which in China are now being built with cobalt containing lithium-ion batteries…“5G will be a major source of cobalt demand in the years ahead,” said George Heppel, analyst CRU, which expects cobalt demand for portable devices to rise to 73,000 tonnes by 2025 from 45,000 tonnes this year…“Down the road we are likely to see some aggressive bidding for cobalt from electric vehicles and mobile phones, where there isn’t really a chemistry that can compete with LCO.”…Cobalt demand estimates mostly vary between 100,000 and 130,000 tonnes for this year, doubling to between 200,000 and 260,000 tonnes in 2025…Analysts expect a balanced cobalt market this year and deficits from 2022 as sales of electric vehicles and 5G phones accelerate. | |
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