Cobalt supply gives the electric vehicle manufactures the blues.
As demand
increases, coronavirus variants continue to disrupt supply chains and as nations and even corporations weaponize trade against
their rivals who will be successful in securing the resources that they need?
If the shortage of semiconductors and
the high prices of tin, lithium and copper weren’t enough to dampen production cobalt’s
historically high prices its supply struggles to keep up with demand.
It shouldn’t be a shocker that China
controls the lion’s share of cobalt. Though China hasn’t discovered significant
amounts of cobalt in China yet, but it does control more than 40% of the cobalt
mines in Republic of Congo.
The Republic of Congo provides the
majority of cobalt supplied to the market today. It’s mined in the central
African country and shipped over land to the South African port of Durban with
the bulk of it being shipped too China to be processed.
Cobalt has been a popular choice for
batteries because the metal
increases battery life and energy density, which in the case of EVs
means additional range, by keeping the battery structure stable as the battery
is continuously charged and discharged.
In addition to batteries Cobalt is used
in aircraft engine parts,
in alloys with corrosion/wear resistant uses, and in electroplating. Cobalt
salts are used to impart blue and green colors in glass and ceramics.
Radioactive 60Co is used in the treatment of cancer. Cobalt is a component of vitamin
B12, which supports the production
of red blood cells.
Recycling has to play a vital role in
the supply of cobalt and other vital resources but that will not be sufficient
as demand increases.
So
as the world weaponizes trade against its geopolitical and
commercial rivals how will your firm secure the resources required to thrive
into the next decade?
