About Cobalt
Cobalt, atomic symbol Co is a hard, lustrous, silver-grey metal that based on its unique properties has many applications.
Although cobalt has been used since ancient times to impart a rich blue colour to glass, glazes and ceramics, it wasn't until 1735 that the free metallic form was prepared and discovered. Since then, the applications have been varied and the element has played a significant role in industrial uses, the hi-tech industry, medical uses, environmental operations and strategic purposes.
Rapidly growing demand for personal transportation across emerging nations such as China and India is creating new environmental and energy based challenges. Adopting solutions, such as the electrification of the automobile, is just one movement that will alter the course of the world's future on going "green." This growing momentum in recent years around environmental sustainability and the rise in socio-economical impact of environmental issues have caused green initiatives to become a global focus. Cobalt holds a critical role in the future energy economy due to its use in rechargeable Lithium-ion batteries, and thus in its use in Hybrid Electric Vehicles (HEVs) and Electric Vehicles (EVs).
Due to escalating gas prices and growing concerns around fossil fuels, more nations are recognizing the importance of HEV production. HEVs not only reduce air pollution but also cut back on fuel consumption by more than 50% compared to conventional vehicles. This trend has increased HEV production on a global scale with an estimated 8 million units produced by 2015, thereby increasing annual cobalt demand by nearly 22,000 tonnes/year.
Lithium-ion batteries are expected to claim 43% of the total vehicle market in the next five years as opposed to the current claim of just 1.6%. As drivers take advantage of government subsidies and lower fuel costs, popularity for hybrid vehicles is expected to substantially increase demand for cobalt in rechargeable batteries.
A growing middle class in developing nations are also becoming consumers of electronics such as televisions, mobile phones and laptops, and as a result are driving the demand for these very same batteries that contain cobalt. Cobalt accounts for 60% of the active material in the cathode and makes up about 50% of the weight of the cathode of the average lithium-ionbattery. In 2009, increased growth in demand for mobile phones alone, accounted for nearly 25% of worldwide demand in cobalt. Projected population growth and the emergence of the BRIC countries as consumers, will most certainly ensure a steady increase in batteries containing cobalt.
Although a few primary Cobalt operations do exist, supply generally comes from the byproduct of Nickel and Copper production and has varying degrees of cost dynamics. A large portion of Cobalt is produced in the Democratic Republic of Congo (DRC) and Zambia as such a byproduct. The issue of conflict minerals has been making headlines around the world. This topic is of paramount importance to Global Cobalt as it directly relates to the supply and demand of strategic metals, including cobalt, that are sourced from the Democratic Republic of Congo - the world's largest supplier of cobalt. In support of the Congo Conflict-Free Movement, many organizations and governments are introducing provisions to trace the metal supply chain and ensure the usage of conflict-free metals in typical electronic devices such as cellphones and laptops. The ultimate goal: To create a degree of transparency and accountability surrounding minerals in conflict regions.
Global Cobalt is the only multi-project pure cobalt company and as such has strategically positioned itself in the forefront of the Cobalt industry to supply the growing demand for this essential resource in the near future.
