By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Live Trading NewsLive Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
Reading: Lithium and Cobalt Prices to Rise $FCX $VALE $BHP
Share
Live Trading NewsLive Trading News
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Search
  • Stocks
  • Forex
  • Gold
  • KNIGHTS
  • Luxury
  • Horse Racing
  • Trade Now
Follow US
© 2024 LiveTradingNews.com - All Rights Reserved.
Live Trading News > Blog > Opinion > Shayne Heffernan > Lithium and Cobalt Prices to Rise $FCX $VALE $BHP
Featured

Lithium and Cobalt Prices to Rise $FCX $VALE $BHP

Shayne Heffernan Ph.D.
Last updated: September 26, 2023 7:06 am
Shayne Heffernan Ph.D.
Share
9 Min Read
why does tesla use toxic cobalt in their lithium batteries 1920 1080
SHARE

Global demand for lithium is expected to grow significantly in the coming years, driven by the increasing popularity of electric vehicles and energy storage systems.

According to a report by McKinsey & Company, global lithium demand is expected to reach 2.5 million metric tons of lithium carbonate equivalent (LCE) by 2030, up from 0.7 million metric tons in 2021. This represents a compound annual growth rate (CAGR) of 20%.

The growth in lithium demand is being driven by a number of factors, including:

  • The increasing popularity of electric vehicles: Electric vehicles use lithium-ion batteries, which require lithium to manufacture. As electric vehicles become more popular, demand for lithium will increase.
  • The growth of energy storage systems: Energy storage systems are used to store electricity generated from renewable energy sources, such as solar and wind power. Lithium-ion batteries are commonly used in energy storage systems, so the growth of this market will also drive demand for lithium.
  • The development of new lithium-ion battery technologies: New lithium-ion battery technologies are being developed that are more energy-dense and have longer lifespans. This is making lithium-ion batteries more attractive for a wider range of applications, which is further driving demand for lithium.

The growth in lithium demand is creating opportunities for lithium miners and producers. However, it is important to note that the lithium market is still relatively immature and there are some challenges that need to be addressed, such as securing sufficient lithium supplies and developing new lithium extraction technologies.

Here is a list of publicly traded cobalt and lithium miners:

Cobalt

  • Glencore (GLNCY)
  • Freeport-McMoRan (FCX)
  • Vale (VALE)
  • BHP Group (BHP)
  • Eurasian Resources Group (ENRC)
  • China Molybdenum (3993.HK)

Lithium

  • Albemarle (ALB)
  • Sociedad Quimica y Minera de Chile (SQM)
  • Livent (LTHM)
  • Ganfeng Lithium (1772.HK)
  • Tianqi Lithium (002466.SZ)
  • Pilbara Minerals (PLS.AX)
  • Allkem (AKE.AX)


Global demand for cobalt is expected to grow significantly in the coming years, driven by the increasing popularity of electric vehicles. Cobalt is a key component of lithium-ion batteries, which are used in electric vehicles and other energy storage devices.

According to a report by Wood Mackenzie, global cobalt demand is expected to reach 215,000 tonnes in 2030, up from 110,000 tonnes in 2021. This represents a compound annual growth rate (CAGR) of 11%.

The growth in cobalt demand is being driven by the following factors:

  • The increasing popularity of electric vehicles: Electric vehicles are becoming more popular due to their environmental benefits and lower operating costs. As electric vehicles become more popular, demand for cobalt will increase.
  • The development of new lithium-ion battery chemistries: New lithium-ion battery chemistries are being developed that use less cobalt. However, these chemistries are still in the early stages of development and it is unclear when they will be widely commercialized.
  • The growth of the energy storage market: Energy storage systems are used to store electricity generated from renewable energy sources, such as solar and wind power. Cobalt-based lithium-ion batteries are commonly used in energy storage systems, so the growth of this market will also drive demand for cobalt.

The growth in cobalt demand is creating opportunities for cobalt miners and producers. However, it is important to note that the cobalt market is still relatively immature and there are some challenges that need to be addressed, such as securing sufficient cobalt supplies and developing new cobalt extraction technologies.

One of the main challenges facing the cobalt market is the concentration of supply. The Democratic Republic of the Congo (DRC) produces over 70% of the world’s cobalt. This concentration of supply makes the market vulnerable to supply disruptions.

Another challenge is the ethical concerns associated with cobalt mining. The DRC has a history of human rights abuses in the mining sector, including child labor. This has led to calls for boycotts of cobalt from the DRC.

Soaring demand for the raw materials needed for the transition towards renewable energy is creating dilemmas for investors weighing the economic, environmental and human rights risks of such projects.

With demand for fossil fuels expected to peak by the end of the decade, the focus is shifting towards lithium, cobalt, copper and other materials that are extracted from the earth through heavy labour and leave scars in the environment.

Demand for lithium — an essential component of car batteries — could increase ninefold between 2022 and 2050, according to the International Energy Agency (IEA).

Lithium demand has already tripled in the past five years.

Lithium and other metals that the IEA calls “key to the clean energy transition” will be the topic of a summit hosted by the global energy watchdog in Paris on Thursday.

Demand for cobalt will have increased from 171,000 tonnes to 524,700 tonnes by 2050, according to the IEA, with nickel requirements set to soar 120 percent in the same timeframe.

The IEA said in a July report that investment in the mining sector is still insufficient to meet demand, and also flagged concerns that a high concentration of new projects were clustered in a small number of countries.

“This is a huge issue,” said Jason Schenker, president of Prestige Economics. “We have massive shortfalls across commodities.”

– ‘A lot of money’ –

Swedish management company AuAg Funds has developed an investment portfolio dedicated to “essential metals”, where the money placed in the fund is invested in shares of mining companies, smelting, refining and other parts of the supply chain.

“We give exposure through equity to all metals: copper, silver, aluminium, lithium, uranium, cobalt,” Christopher Svensson, founder and co-portfolio manager at AuAg Funds.

To comply with financial regulations, however, it is not possible for them to invest directly in a specific project, only in the companies.

Schenker warns a lot of investment is needed in projects that will take a long time to deliver.

“The amount of additional mining, refining, smelting, and everything that’s going to be needed to get us where we need to be in terms of supply is a number very difficult to come to, because every time you’re opening a new mine, it involves a lot of money,” he said.

“These are large capital investments and they take many years to put in place before you really begin to see that return and the number of mines,” added Schenker.

Svensson said it needs “15-20 years to start a new mine”.

– Compromise and sacrifice –

The mining sector also presents significant concerns around human rights and environmental pollution.

Cases where the lives of mine workers are endangered, natural habitat is destroyed or local populations are negatively impacted regularly steal headlines.

Others express concerns over carbon emissions from production and refining sites.

“If you feel passionately about sustainability, I imagine it’s got to be pretty tough to hear that the future of clean energy requires a trade-off, as more mining and that’s also going to have negative impacts,” said Schenker.

Investors in environmental, social, and corporate governance (ESG) have to choose “do we sacrifice the S, or the G, or the E for the energy transition,” said Margot Seeley, ESG analyst at ABN AMRO Investment Solutions.

AuAG claims to have a strict policy for selecting its portfolio companies, and Svensson said their structure allows institutional investors to get involved.

“We want companies that are extracting metals in the best environmental way,” he added.

Shayne Heffernan

You Might Also Like

Hotels as Art Galleries in Asia

125 Public Companies Now Hold Bitcoin

Ferrari Hypersail

Banking Apocalypse, Bitcoin’s Just the Beginning

Bitcoin at ATH, What Next?

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

Subscribe our newsletter for latest news around the world. Let's stay updated!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Twitter Copy Link Print
Share
By Shayne Heffernan Ph.D.
Follow:
Shayne Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 40 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.
Previous Article 2023 09 25T232538Z 1 GC2 RTRLXPP 2 LYNXPACKAGER Reassuring Beijing: South Korea Welcomes Japan and China for High-Stakes Talks
Next Article 1 2aBDS1l1PpHDoPX29S7FzA The history of Tiffany Blue
Buy Bitcoin

Buy Bitcoin

Latest News

Saint Francis of Assisi in Ecstasy Caravaggio c.1595
St. Francis: The Deeds You Do Today
Catholic Featured Headline News Lifestyle Lifestyles of the RIch and Famous Living Luxury Opinion Politics Shayne Heffernan July 11, 2025
Screenshot 26 6 2025 132527
Tokenization and the Future of Financial Markets
Bitcoin Blockchain DeFI Digital Assets Economy Headline News KXCO Politics USD July 11, 2025
photo 2025 03 03 07 22 06
InfoFi: The Latest Abomination in Crypto
Crypto Featured Headline News Shayne Heffernan on Investments July 10, 2025
czi0oawj8y561
Asia’s Growth Resilience Amid U.S. Tariffs
America Asia Asia Business Featured Headline News KXCO Politics USD July 10, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
4.4kFollowersFollow
//

Stay informed with LiveTradingNews.com – your ultimate destination for timely and insightful updates on global markets, finance, and investment trends. Explore the latest news and analysis to empower your trading decisions.

Quick Link

  • About us
  • Advertise
  • Send us a tip!
  • Privacy Policy
  • Contact us

Top Categories

  • Knightsbridge Insights
  • Featured
  • Stocks
  • Shayne Heffernan
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Subscribe our newsletter for latest news around the world. Let's stay updated!

Live Trading NewsLive Trading News
Follow US
© 2025 LiveTradingNews - For The Traders, By The Traders – All Right Reserved By Knightsbridge Group
Welcome Back!

Sign in to your account

Register Lost your password?