There is a growing demand for cobalt, due to the booming prospects of the electric vehicle (which will require lithium-ion batteries, in which cobalt is a large portion) and due to the current supply constraints on cobalt. In fact, cobalt has seen a 150% price hike over the last 12 months. And the demand doesn’t look like it’s stopping anytime soon – which is great news for cobalt-producing companies such as eCobalt Solutions (TSXV:ECS).
Cobalt demand is expected to rise by a compounded annual growth rate of about 6.9% from 2016 to 2020. Cobalt demand specifically for lithium-ion batteries is expected to grow by a compounded annual growth rate of 11.7% from 2016 to 2022.
eCobalt is looking to be a part of this growth rate. Currently, the company owns the only environmentally permitted, primary cobalt project located in the United States (the Idaho cobalt project, or ICP), putting them in a prime position for cobalt mining. The company is in the process of working on the project’s construction, cobalt marketing, and optimization. When fully operational, the project should put eCobalt firmly on the radar for any investor, and make it a strong producer of this high-in-demand energy metal.
Featured Image: twitter
