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Chinese industrial giant in worldwide search for new cobalt supplies

Cobalt is now replacing lithium as the most sought-after, short-supply element needed for EV battery design. That’s essential to the long-term interests of Ganfeng, which is on track to become one of the world’s largest material and manufacturing entities in the burgeoning lithium-ion battery industry.[1]

To get to the top, Ganfeng is now on a worldwide search for cobalt to feed their future supply requirements.

With lithium supplies already secure, Ganfeng now faces significant challenges meeting their need for hard-to-find cobalt.  Locking in future supplies of cobalt is essential to their rapidly growing battery division and meeting long-term strategic objectives, but as will be revealed below, that won’t be easy.

Due to the rapid growth in demand for electrical vehicles (EVs), demand for cobalt essential in battery design is skyrocketing. Battery makers like Ganfeng cannot simply go out and buy more cobalt…they must lock in new, incremental sources of supply.

You are likely already aware that over the last few years, lithium investors made fortunes in the global rush to find and secure lithium supplies. Chinese companies like Ganfeng Lithium fueled that charge securing all the lithium resources that could be found. Economic Times reports that Chinese entities now control about half of world lithium production and 60% of global battery production.[2]

Giants like Ganfeng are well positioned to dominate world markets and their strategies for achieving that goal remain unchanged. Dominate key material resources. They got the lithium, now they need the cobalt. And a current target: Pershing County, Nevada.

Ganfeng wants this Nevada cobalt…and they’re going after it today as aggressively as they did lithium in the past.

Looking back at lithium, investors in off-radar lithium exploration companies made fortunes as the search for new supplies skyrocketed. Shares in many junior lithium exploration companies soared well into triple digits…all inside 12 months!

Lithium juniors soared on global demand and a number of little-known lithium exploration companies posted breathtaking gains:[3]

 

Gains for 19 of the most popular junior lithium juniors averaged 274% growth in a single year! It was a home run winners and losers combined!

Today, lithium markets have stabilized, but cobalt is an entirely new development.

As a global rush to electric-powered vehicles accelerates, reliable, politically stable cobalt supplies could propel enormous upside for cobalt exploration stocks. Shareholders holding early positions stand to benefit most as global demand for cobalt builds.

Well known, but long forgotten.

Years ago, geologists uncovered this significant cobalt prospect in Pershing County, Nevada geologically buried around a massive plug of iron ore. The iron ore was mined years ago leaving an open pit exposing multiple cobalt showings.

The full extent of this cobalt formation has yet to be determined, but geologists already have good cause to believe that whatever is in the ground is enormous in scale…and value! Those beliefs are rooted in historical mining records dating back over half a century.

Through 40s and 60s, a total of 1.2 million tons of iron was mined from surface at the site. During that mining process, copious quantities of cobalt began appearing on the edges of the iron ore deposit, leading geologists to surmise that millions of years in the past, a massive upflow of cobalt rose toward the surface.

In that rise, the cobalt became trapped by a massive iron deposit. As the upflow progressed, that iron formed a “plug” that forced a highly enriched cobalt body to pool all around.

There it remains to be mined today!

Fast forward to present day…

At the time of this discovery a half century ago, cobalt was an inconsequential element having little economic value, particularly in massive production. Barely a niche market at the time, few suspected at the time that it would grow to become one of the most strategically important materials for 21st century energy storage technology!

What to do now…

Start looking into this without delay. Chinese companies like Ganfeng are moving aggressively to secure new global supplies of cobalt. Fully 98% of all cobalt needed by Chinese companies is imported. Three-fifths of that originates from the Congo, a point not covered in this report, but of significant importance to global cobalt markets. Simply put, for the China to achieve its strategic objectives in battery technologies, new geopolitically stable sources of cobalt must be brought into production![4]

Thus marks the genesis of a U.S. cobalt mining industry!

For a future driven by electrically powered vehicles, more cobalt must be found and produced. The scale of this is simply unprecedented.

Bloomberg reports:

“Our latest forecast shows sales of electric vehicles (EVs) increasing from a record 1.1 million worldwide in 2017, to 11 million in 2025 and then surging to 30 million in 2030 as they become cheaper to make than internal combustion engine (ICE) cars. China will lead this transition, with sales there accounting for almost 50% of the global EV market in 2025.”[5] [emphasis author’s]

Bottom line: the Chinese are up against the wall! With demand for electric power vehicles soaring worldwide Chinese manufacturers like Ganfeng face intense pressure to move swiftly on new cobalt opportunities.

Time to move…

Don’t sit on this. It’s exceedingly rare that the market hands you clear opportunities to grow your investments by triple digits.

Get started right now with your due diligence. As you begin you’ll likely note that the cobalt boom has already gained some traction. This time last year, Forbes reported:

“Global prices of cobalt have tripled in the past year” because cobalt isa critical element of Lithium-ion batteries.”[6]

“Fueling future generations of electric vehicles is making some mining entrepreneurs rich as demand grows for critical metals, such as lithium and cobalt.” 

At the bottom of this report is a link that connects you to the complete Forbes article, but before the full read, here’s an excerpt that points clearly to where the cobalt market is headed.

“Despite their name, most lithium-ion batteries also require cobalt and graphite to do their job of retaining and discharging electricity, and while lithium and graphite are plentiful, it is cobalt that has manufacturers of battery-based products worried.”

“Carmakers, such as Germany’s BMW, and electronic gadget makers, such as Apple, are scouring the world for supplies of cobalt, a rare metal that has tripled in price over the past year to $80,000 a tonne, with 60 percent of global supply coming from the bloody Democratic Republic of Congo. [emphasis author’s]

Bottom Line:
With global demand for cobalt soaring…and with no immediate potential for supply growth from existing resources…new sources of cobalt outside of current supply channels must be brought into production.

This trend has already gained solid traction. Global cobalt prices have soared over the last few years and no significant new supply lines appear imminent.

Move quickly, as this opportunity could vanish in a heartbeat.

 

[1] http://www.ganfengbattery.com/about_en.html#home

[2] https://auto.economictimes.indiatimes.com/news/auto-components/in-the-new-lithium-great-game-germany-edges-out-china-in-bolivia/67736127

[3] https://www.nanalyze.com/2016/04/19-lithium-junior-mining-stocks/

[4] https://www.reportlinker.com/p04873771/Global-and-China-Cobalt-Industry-Report.html?utm_source=PRN

[5] https://about.bnef.com/electric-vehicle-outlook/

[6] http://www.forbesindia.com/article/cross-border/global-prices-of-cobalt-have-tripled-in-the-past-year.-heres-why/49827/1

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