LOGIN JOIN SHARECAFE SIGN UP FOR OUR NEWSLETTER ADVERTISE
share cafe logo  
 
SHARECAFE COMMENTARY

New World Cobalt Aims To Meet Battery Makers' Demands For Non-DRC Supplies
BY BARRY FITZGERALD - 11/05/2018 | VIEW MORE ARTICLES BY BARRY FITZGERALD

Elon Musk reckons ‘boring bonehead’ questions on Tesla’s massive cash burn rate are not cool.

He was equally sensitive on Tesla’s recent first-quarter investor call on the subject of cobalt, a key ingredient in lithium-ion batteries, which is today’s interest.

The cobalt price has increased almost four-fold in the past two years as the world frets about being reliant on the less-than-stable Democratic Republic of the Congo for as much as two-thirds of its needs to power the electric vehicle and renewable energy storage revolution.

Apart from the price rise – reflecting an overall supply deficit at present - there are concerns that DRC supplies are less than ethical, with allegations of child slave labour being involved being nightmarish stuff for big-brand end users of cobalt from that country.

So supply/cost pressures and ethical issues are at play in any discussion on cobalt.

But Musk did not bother with any of that at the briefing. He simply brushed it all aside with the comment that Tesla thinks it can get “the cobalt to almost nothing” in its particular preference for nickel-cobalt-aluminium batteries. He was exaggerating.

While there is no doubt that the trend to lower cobalt content in batteries is real, the metal’s key role of providing stability (no fires) is not going away any time soon. And as Canaccord Genuity pointed out, the trend of lower cobalt has been built in to what remain “very positive’’ demand models.

Plus, Capricorn poised to be Australia’s next 100,000ozpa gold producer. Read more + 



View More Articles By Barry Fitzgerald

One of Australia's leading business journalists, Barry FitzGerald, has joined the Resources Rising Stars' Ten Bagger team. FitzGerald, who is a specialist resources reporter with 40 years' experience, will publish his highly regarded weekly column in Ten Bagger.

FitzGerald - whose column highlights the issues, opportunities and challenges for small and mid-cap resources stocks - most recently penned his column for The Australian newspaper and before that, The Age. His column will give readers the chance to benefit from FitzGerald's extensive contact base, invaluable insights and vast experience of the junior and mid-tier resource sector.


 

SHARECAFE VIDEO


Key movements in the Australian ETF market

More video   

RECENTLY ADDED TO SHARECAFE


 › Telstra Leads ASX Higher Over The Week
 › BHP Leads Another Big Reporting Week
 › Oil Slips As Oversupply Concerns Weigh
 › Traders Add To Record Bearish Positions In Gold
 › Late Rally Lifts Wall St, Tech Still Under Pressure
 › Diary: RBA Minutes, Jackson Hole, Trade Turmoil
 › Monday At The Open
 › Marcus Today End Of Day Report
 › Friday At The Close
 › Hard Work Paying Off For Sheffield Resources
 › Recognition That Lithiums Ain't Lithiums May Help Explain Price Volatility
 › Next Week At A Glance
 › Market At Midday On Friday
 › BLX - Citi rates as Buy
More ShareCafe   

GET THE SHARECAFE BREAKFAST BRIEFING


Delivered free to your inbox before the market opens each trading day. Sign up below +