Cobalt
- Cobalt alloys form part of the lithium ion battery’s cathode material and is major input metal to rechargeable lithium-ion batteries for EV market which is expected to grow from current 10% to 40% by 2025.
- Auto makers pledging to stop manufacturing internal combustion engine cars and focus solely on electric vehicles.
- Global demand for refined Cobalt products was approximately 112kt in 2018.
- Projected demand for Cobalt in 2018 is approximately 122kt, using a CAGR of 9% YOY over 2017. It is projected that this CAGR will continue to 2025 with a CAGR of the EV segment within at 25% CAGR.
- Cobalt prices have risen 270% to over $80,000/t since early 2016.
- Use of lithium ion batteries in grid scale energy storage, allowing households or entire communities to store electrical energy (when it is inexpensive) and consume it (when it is expensive), is forecast to grow strongly.
- Major market for Cobalt is mobile phone and other non EV batteries – currently at around 45% of total Cobalt market.
- China’s pipeline of planned battery plants is about triple the rest of the world at 130.4 GWh with the rest of the world at around 42.2 GWh (Bloomberg New Energy Finance).
- China is now the largest market for new energy vehicles (battery, plug in hybrid and fuel cell) at around 777,000 cars (China Association of Automobile Manufacturers).
- Chinese administration is offering generous incentives for consumers buying non internal combustion engine vehicles and all manufacturers (including European manufacturers) are encouraged to use Chinese made batteries.
- China’s Contemporary Amperex Technology Ltd (CATL) is planning a $2bn IPO for 10% of the company to value the company at around $20bn to finance building the second largest battery factory in the world (behind Tesla’s Gigafactory in Nevada).
- Mercedes Benz and Smart cars to offer electric versions of all models by 2022. They are building a global battery network of 6 factories in 3 continents and have announced plans to invest $1bn to build a new EV SUV in the US.
Responsibly Sourced
Aeon Metals’s Walford Creek project, located in North West Queensland has the potential to bring responsibly-sourced Cobalt to the global base metals supply chain.
With operations in Australia, an OECD jurisdiction governed by strict ethical guidelines and a rich history of sustainable mining practice, Aeon Metals is well placed to supply potential global consumer electronics and technology customers and automobile manufacturers who have responsible sourcing policies in place and require strict ethical guidelines to be followed.
Aeon Metals has a total commitment to maintaining a safe and healthy workplace, allocating significant resources to training and management systems ensuring a best practice approach to safety at all times. Aeon Metals complies with all environmental laws within the jurisdictions it operates.
