Have you checked the recent price of cobalt in the market? The prices are sky-high, and there is a high probability that cobalt prices will continue to be on the increase, as seen from a cobalt price forecast report. The major reasons behind this are the revolution of electric vehicles and the increased supply of this precious metal. Other reasons are:
The largest share of cobalt in the global market is an export from the DRC. The mining process involves child labor, and some companies are finding this unethical and are therefore withdrawing their purchase to maintain their integrity in business. The supply of this precious metal is also uncertain in the near future, and companies are buying as much as they can.
The other large percentage of cobalt in the world is a by-product of nickel and copper mining. Therefore, the availability of cobalt depends on these two minerals. When the supply of nickel and copper is on the decline, then there is a short supply of cobalt as well.
China’s High Demand
Since the introduction of the first electric vehicle in the market—Tesla, more companies are trying to catch up with the company. One country that is at the forefront of making the shift to environmentally safe vehicles is China. The country is importing a large amount of cobalt every year. The restrictions on using conventional vehicles are driving the demand further up.
There are few cobalt-related stocks in the stock markets, meaning that it is hard for any investor to get into the business of buying cobalt. While the hike in prices could lean on the shift to using electric vehicles, it goes beyond that. More countries are trying to ban the use of fossil fuels, and that means they will need cobalt for the change in their sources of energy.
If the cobalt price forecast is anything to go by, it is high time that investors strive to get this precious mineral while it is available. Cobalt acts as the core of many industries, and its availability is essential to drive the industrial revolution further.