This is the last story I intend to write for you about cobalt for quite some time.
Why? Because it’s time to stop talking. It’s time to act. It’s time to get rich.
The foundations of fortunes will be laid in the months ahead.
You may remember the article I wrote about energy metals on November 30. I talked about cobalt, lithium, copper and nickel.
The prices of all these metals are up since then. And leading the way is cobalt, as this chart I grabbed from Bloomberg shows…
Cobalt is up 24% since the last time I wrote about it for Banyan Hill. Do you think that’s the top? Or will it go further?
The Race for Cobalt Is On
Here’s another Bloomberg chart, showing anticipated cobalt demand through 2030…
Wow! Well, with that kind of demand, they’ll just mine more, right?
Good luck with that!
See, the Democratic Republic of Congo (DRC) is the world’s largest producer of cobalt. In fact, that one country delivers roughly 53.6% of global production.
(Sources: Northern Miner/United States Geological Survey)
But the DRC is run by the kind of fine fellows who get all grabby when miners have success. They’re raising taxes. A lot!
And the DRC has other problems, including a propensity toward child labor and flare-ups of civil war.
So, miners need to move away from the DRC. Except there’s only one new cobalt mine coming online this year. And it’s in the DRC!
In fact, the DRC accounts for 85% of the projected growth in cobalt supply for the next five years.
Whoops! So now, the race is on.
The good news is there are some excellent, little-known cobalt projects scattered across North America.
Everyone’s Looking for Cobalt
To get back to my original point about getting rich: I believe investors who buy those little-known cobalt explorers and developers stand to profit handsomely.
You know that the fastest-growing demand for cobalt is in lithium-ion (Li-ion) batteries. About 55% of cobalt goes into rechargeable batteries. Compare that to 40% for lithium and 5% for nickel.
And global production of Li-ion batteries is projected to more than double by 2021.
Sure, that’s a projection. And as baseball legend Yogi Berra famously said: “It’s tough to make predictions, especially about the future.” Li-ion battery production may go up slower … or faster.
Still, it may be a lowball estimate. Heck, Volkswagen alone plans to make 300 electric models by 2030. It’s investing $84 billion to do so. And it hasn’t lined up a cobalt supplier … yet.
Do you think Volkswagen is going to invest in the DRC, with all its troubles and grabby government fat cats? Or will it invest in one of the lesser-known, North American companies I talked about earlier?
Meanwhile, Tesla is itching to lock in deals, too. Even Apple is looking for a cobalt supplier. As in, locking in several thousand tons of cobalt over the next five years.
So, let me tell you this: There is not a scenario on God’s green earth where the cobalt price doesn’t go higher.
Do You Want to Get Rich?
It’s hard to recommend cobalt stocks in a venue like this because cobalt companies tend to be very small.
Sure, we’re playing this trend in Supercycle Investor. And we’re doing OK. It’s just that I think we’re going to do a lot better going forward.
So, this is the question you must ask yourself: Do you want to get rich? Are you ready to ride this cobalt-blue wave? There are going to be billionaires made in this market.
You might not become a blue metal billionaire. But you can do very well indeed on this massive, money-soaked mega trend.
Editor, Wealth Supercycle
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