How to Invest in Battery Metals Updated 2024 INN

Its low-risk model, consistent profitability, and dividend yield make it an attractive, indirect way to invest in cobalt. Although the Congo is the top location for sourcing cobalt, China owns 15 of the 17 cobalt operations in Congo, according to the Australian Strategic Policy Institute. As China also owns most of the world’s cobalt mining, it’s a global powerhouse in exporting the element and for producing products that rely on it. Many countries are making an effort to work with the Congo and China to have at least a partial mining presence there. Strict environmental and ethical sourcing regulations add extra layers of risk to cobalt’s volatile market.

• About 5% of its holdings produce copper, and cobalt is a valuable byproduct of copper mining.
• In this section, we will delve into the current and projected trends in the cobalt market for the year 2024.
• In fact, via its copper mining assets in the Democratic Republic of Congo, CMOC Group Ltd. is the world’s second-largest producer of cobalt (which it derives as a byproduct from refining copper).
• Notable names included Glencore (GLNCY -1.67%) and top copper producer BHP Group (BHP -0.06%), which obtains cobalt from its nickel- and copper-refining activity.

Vanadium is predominantly mined as a by-product of other metals and is found in deposits of siltstone, uraniferous sandstone, phosphate rock and titaniferous magnetite. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. Before choosing a method, it is important to think about what your goals are, how much you have to invest and do a little research on the most profitable options for your needs and goals.

The majority of the world’s cobalt supply comes from the Democratic Republic of Congo (DRC), which accounts for about 70% of the global production. The DRC is also home to the largest cobalt reserves, estimated at 3.6 million metric tons. However, the DRC is also a country that faces political instability, civil unrest, corruption, and human rights violations. These issues pose significant risks for the cobalt industry and the investors who rely on it.

While cobalt is mined around the world, some of the largest producers are in politically unstable areas. The Democratic Republic of Congo alone produced 74% of all cobalt in 2021, according to the Cobalt Institute. Another massive, untapped reserve exists under the mountains of Afghanistan, where the second-largest deposit of copper on Earth has been found. Investing in cobalt ETFs requires access to the corresponding market first. Investors can simply obtain it by using a third-party investing service. Furthermore, artisanal mining in the DRC has hit an all-time low, accounting for less than 2% of the market in 2024, and is not anticipated to regain its former market share.

This method allows investors to track Cobalt’s intrinsic market value without distortions from corporate or economic fluctuations. ‘Falling cobalt prices may lead OEMs in certain markets to reconsider lower nickel NCM batteries, with higher cobalt content, due to the potential cost savings,’ notes Fastmarkets in its report. With this said, impact investors can profit from investing in cobalt, but only if they do lots of research. Ensure you have a deliberate strategy before hopping onto the cobalt party train if the market sentiment starts to move against you. This Vancouver-based precious metals streaming company has various streaming agreements with several minds worldwide. The company has proven reserves of tens of millions of pounds along with reserves of silver, palladium, and gold.

The DRC put out 170,000 metric tons (MT) in 2023, far how to buy dent coin in us ahead of runner-up Indonesia’s 17,000 MT. Russia (8,800 MT) and Australia (4,600 MT) were the third and fourth largest, respectively.

I hope this article has given you a better understanding of why investing in cobalt might be worth your time, investment dollars, and research. The Vanguard Materials ETF is a large fund focusing on companies that produce base materials and metals. It offers broad exposure to the material sector (including cobalt) for a very low ETF expense ratio of 0.1%. When considering investments in cobalt or any other commodities, seeking guidance from a financial advisor is highly recommended.

Markets

Barron’s analysts also believe that the stock performance will continue to improve, which builds a strong case for investing in Glencore. Glencore is one of the top natural resource companies in the world. With a diverse portfolio, cobalt is only one of the areas of focus.

Efforts to diversify supply—such as Indonesia’s expansion and emerging projects in Canada and Australia—offer alternatives, but the DRC’s scale keeps it central in the near term. Supply constraints could emerge if demand outpaces production or if ethical sourcing pressures tighten availability, potentially pushing prices higher despite the current surplus. The DRC’s dominance introduces geopolitical risk, with 84% of production concentrated in a single country prone to instability and ethical concerns like child labor in artisanal mining. The cobalt market in 2025 is shaped by a complex interplay of oversupply, shifting demand, and geopolitical factors. Prices have stabilized at relatively low levels—as of March 24, 2025, refined cobalt prices are fluctuating between $28,338.24 and $31,013.95 per metric ton—due to a supply glut that began in 2023.

All commodities are volatile, but cobalt is especially unpredictable. While it is currently in demand, the combination of environmental and human rights issues surrounding this material has made it a target for corporate divestment. While long used as an industrial metal, cobalt has also been a relatively niche material.

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Cobalt is mainly used in the production of lithium-ion batteries for electric vehicles, consumer electronics, and energy storage systems. The demand for these products is expected to grow significantly in the coming years, especially in China, Europe, and the US. According to a report by BloombergNEF, the global demand for cobalt in batteries will increase from 110,000 tons in 2020 to 260,000 tons in 2030, representing a 136% growth.

• The European Resources Group is working on a new mining project in Kazakhstan and has an active exploration department to find new mining opportunities.
• Lithium has skyrocketed in investor interest in recent years due to its role in lithium-ion batteries, which are used in electronic devices such as cell phones, laptops and, of course, EVs.
• ‘Falling cobalt prices may lead OEMs in certain markets to reconsider lower nickel NCM batteries, with higher cobalt content, due to the potential cost savings,’ notes Fastmarkets in its report.
• Efforts to diversify supply—such as Indonesia’s expansion and emerging projects in Canada and Australia—offer alternatives, but the DRC’s scale keeps it central in the near term.

However, the vast majority of this silvery-gray how to buy leo token transition metal is used as a steel additive. Many metal ETFs focus on just one metal, which is especially common in gold and silver ETFs. Cobalt is not mined directly but is a byproduct of mining copper and nickel.

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Your investment style can dictate which kind of fund is best for your portfolio. Long-term demand forecasts favor companies poised to meet rising needs beyond the current surplus. Cobalt is relatively scarce in the Earth’s crust and is mostly recovered as a byproduct. With the DRC holding about 63% of global reserves, the concentration of supply makes this market unforgiving.

GlobalData

Investing in cobalt is a strategy that involves purchasing cobalt assets or stocks in companies that mine or use cobalt. Cobalt is a critical element in the production of lithium-ion batteries, which are used in a wide range of applications, including electric vehicles and mobile devices. fast secure and anonymous vpn Glencore remains the world’s largest cobalt producer, outputting over 25,000 metric tons annually from its DRC operations, including the Katanga and Mutanda mines. Despite a supply glut, its financial stability shines, with 2024 adjusted EBITDA exceeding US$11 billion across its diversified metals portfolio (copper, nickel, zinc).

Future Growth Potential

The demand for cobalt is closely tied to its essential role in next-generation batteries, particularly in the production of lithium-ion batteries. Cobalt, in the form of cobalt oxide or cobalt salts, is used in the cathode of these batteries. Its high energy density and stability make it a critical component for achieving high-performance battery technology.

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Sherritt International Corp is a Canadian company on a mission to build a more sustainable mining industry. This company is a pioneer in recycling lithium-ion batteries, which will become costly as EV adoption continues to increase and more vehicles reach the end of their lives. Umicore is a must-have stock if you’re building a portfolio with exposure to cobalt as one of your main strategies. Wheaton Precious Metals is another giant in the precious metal market. Glencore is an excellent investment because this company does more than mine cobalt. To diversify its activities, it plays a part at different levels of the distribution process.

This decline is attributed to the prolonged period of low prices, increased industrial mining and formalisation efforts within the country. Cobalt demand, excluding government stockpiling, is set to grow at a compound annual growth rate (CAGR) of 7%, reaching 400,000t by the early 2030s, primarily fuelled by the expansion of the EV market. Furthermore, the cobalt surplus, which has kept prices low, is forecast to diminish in the coming years due to increased demand.