Cross-Asset Thematic Strategy, Edelscourt

Albert Maass

Cross-Asset Thematic Strategy

Thematic (Sector/Industry)

Electric cars use lithium-ion batteries, majority of which use cobalt in their cathodes to improve structural stability and prevent overheating.
<ul>
<li>The metal is very expensive and current technology hasn't been able to fully substitute it with cheaper materials.</li>
<li>Most cobalt is mined in Congo, a corrupt country where children extract the metal by hand.</li>
<li>Users such as Apple and Tesla are moving away from Congo, pressuring up prices for more "ethical" supply.</li>
<li>Chile (a politically stable country with no child labour) is restarting cobalt mining in the precinct "La Cobaltera" after more than 70 years of it being discontinued.</li>
<li>Mines in La Cobaltera are estimated to have more than twice Congo's cobalt concentration. Initial production wold be around 23,000 tons or 1/6 of global production of the metal.</li>
</ul>
The potential for an increase in ethically sourced cobalt coming from "La Cobaltera" is good news for EV producers.
<ul>
<li>
As the cost of the battery represents about half the cost of producing an electric car, cheap cobalt is essential for electric vehicle makers' competitiveness and success.
</li>
</ul>

Electric cars use lithium-ion batteries, majority of which use cobalt in their cathodes to improve structural stability and prevent overheating.

The metal is very expensive and current technology hasn't been able to fully substitute it with cheaper materials.
Most cobalt is mined in Congo, a corrupt country where children extract the metal by hand.
Users such as Apple and Tesla are moving away from Congo, pressuring up prices for more "ethical" supply.
Chile (a politically stable country with no child labour) is restarting cobalt mining in the precinct "La Cobaltera" after more than 70 years of it being discontinued.
Mines in La Cobaltera are estimated to have more than twice Congo's cobalt concentration. Initial production wold be around 23,000 tons or 1/6 of global production of the metal.

The potential for an increase in ethically sourced cobalt coming from "La Cobaltera" is good news for EV producers.


As the cost of the battery represents about half the cost of producing an electric car, cheap cobalt is essential for electric vehicle makers' competitiveness and success.



La Cobaltera: New Ethical Source of Cobalt Is Good News for Electric Car Makers

China

Zhejiang Huayou Cobalt Company Ltd. manufactures, processes, and distributes battery materials and new cobalt materials. The Company produces cathode materials, cobalt products, copper products, nickel products, nickel cobalt manganese hydroxide, and lithium products. Zhejiang Huayou Cobalt conducts businesses in China.

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Zhejiang Huayou Cobalt (603799 CH)

La Cobaltera: New Ethical Source of Cobalt Is Good News for Electric Car Makers

Electric cars use lithium-ion batteries, majority of which use cobalt in their cathodes to improve structural stability and prevent...

Albert Maass

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