Current cobalt price per pound9/27/2023 ![]() ![]() It is estimated that artisanal mines are the source of 10 to 20% of the cobalt coming out of DRC, a country that accounts for nearly 70% of the world’s supply of this controversial battery metal. The cobalt conundrumīeyond the expectation that the global mining sector will be challenged to keep pace with skyrocketing demand, another impetus to establish North American sources of cobalt is most of this increasingly important battery metal is currently mined in the Democratic Republic of Congo (DRC), a country plagued with political and social issues.Īrtisanal mining in DRC has captured headlines around the world due to the unsafe working conditions and human rights violations as men, women, and children hand-dig down into some of the richest sources of cobalt on Earth. The climbing demand and price has also spurred the revival of a cobalt factory in Ontario, a Canadian province known for hosting deposits rich in silver and cobalt. With rocketing demand driving the price of cobalt up to above US$24 per pound by late July, a nearly 40% increase over the $33,000/t at the onset of the year, the economics of recovering cobalt as a byproduct is becoming more intriguing for North American copper and nickel producers. “This situation limits producers’ flexibility in adjusting the amount of cobalt mined in response to changes in demand and can result in periods of oversupply or shortage,” according to the USGS. Instead, it is typically produced as a byproduct at copper and nickel mines. This projected massive growth in cobalt demand is further complicated by the fact that this battery ingredient is seldom mined as a standalone metal. ![]() With existing battery chemistries, these currently planned lithium-ion battery factories alone would need a staggering 651,000 metric tons of cobalt, which is 465% more than the 140,000 metric tons that the United States Geological Survey calculates was mined globally during 2020. While the sector has made headway in reducing the amount of cobalt needed, the average 100-kilowatt-hour lithium-ion battery pack, the size used to power a Tesla Model S or Model X, currently has roughly 20 kilograms (44 pounds) of cobalt, according to DOE.īenchmark Mineral Intelligence, a world-leading battery supply chain analyst, estimates that a 35 gigawatt-hour lithium-ion battery megafactory requires roughly 6,000 metric tons, or 6 million kg, of cobalt per year.Īccording to the United Kingdom-based firm’s June data, more than 200 megafactories are being built, or are in the pipeline to be built in the coming years. This risk has automakers, lithium-ion battery manufacturers, and government agencies investigating battery chemistries that reduce the amount of cobalt needed – a task that is not easy without sacrificing the safety and performance provided by this critical transition metal. Department of Energy penned in an April report. “Cobalt is considered the highest material supply chain risk for electric vehicles in the short and medium term,” the U.S. ![]() The envisioned green future where every North American is driving a battery-powered electric vehicle charged with renewable energy could be undermined by cobalt, a somewhat scarce and controversial metal that makes lithium-ion batteries better. ![]()
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