A new video released this week by Declan Cobalt highlights global cobalt demand figures that will result in a minimum of $7.5B of cobalt sales at today’s low per pound prices coming from the Vokswagen Group alone!
This unprecedented demand highlights the rapid growth of Electric Vehicles sweeping across the world. This is in addition to the dramatic effect that Residential Energy Storage and grid-balancing for renewables will have.
A Tectonic Shift Is Underway
The growth in Electric Vehicle Battery and Residential Energy Storage sales are just two signs of a tectonic shift from an old infrastructure and technologies to totally new ways of doing things. These shifts will earmark many trillions of dollars in spending and there will many winners and many losers in this shift. Cobalt will be one of the big winners!
Volkswagen Alone To Create 15 Million Vehicles by 2025
Volkswagen is taking the lead on electric vehicle production, committing to produce 15 million vehicles by 2025 which will require 300,000,000 pounds of cobalt. At today’s low price of that equals total cobalt purchases of $7.5B from a company whose headquarters sits a mere 3 hours drive from the Tesova cobalt mines of Declan Cobalt. With a projected imminent 30% price increase, this equals $9.75B!
65% of Cobalt Is Located In Troubled Zone DRC Creating Desperate Search For New Ethical Cobalt
One of the core challenges to meeting this demand for cobalt in an ethical manner is that 65% of the world’s supply is located in the Democratic Republic of Congo, an area plagued with political instability, legal opacity and child labor used in the mines. The solution is to this problem is ethical cobalt and the race is on to find it. Declan Cobalt is positioned to be a key player in that solution.
Declan Cobalt Is Best Positioned To Serve This Need.
At just 300km distance from the Volkswagen global headquarters in Wolfsburg, Germany, Declan Cobalt’s Tisova mine is ideally positioned for Volkswagen and other major purchasers of cobalt. Realizing this opportunity requires a great team with the ability to execute. There is none better in that regard than Declan’s CEO Wayne Tisdale who has many years of leading successful mining companies, including his recent sale of US Cobalt to First Cobalt for a combined equity value of $149.5M. Declan Cobalt has already made significant strides in terms of executing on their plan, having recently announcement the start of mining!
The coming total shift of infrastructure to renewables and their enabling technologies, especially in Europe is leading to massive investment. This will start a global arms race for cobalt sources and now is the time to get in before that starts. Declan, with its Tisova mine located in the heart of Europe and just 300km from Volkswagen HQ is the best positioned to take advantage of this cobalt arms race!
(Note: In this article we mention Declan Cobalt. Declan Cobalt is a client of TrendScan and members of the TrendScan team own options to stock in Declan Cobalt.)