Palisade Research- A Brief Cobalt Primer

The projected demand for lithium-ion batteries, namely Tesla’s insatiable need for those batteries, propelled lithium and other ‘energy metals’ into the spotlight. Tesla is targeting annual production of a staggering 500,000 vehicles by 2018 and 1 million by 2020, driven by the heavily anticipated release of the mass-market Tesla Model 3, selling at a base price of $35,000. Tesla CEO, Elon Musk, recently announced the company is now sitting on 400,000 pre-orders, each secured with a $1,000 deposit. Bloomberg New Energy Finance (BNEF) forecasts that 35% of vehicles sold in 2040 will be electric vehicles, a pretty astounding figure considering less than 1% of current global sales are EV. Assuming that cobalt remains essential to the rechargeable battery, cobalt consumption will grow at an average annual rate of 5.1% from 2016-2020.

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