Cobalt: Glencore strikes back has been published exclusively on Seeking Alpha on Mar. 31, 2017. 

  • Cobalt is ‘enjoying its day in the sun,’ Glencore CFO says
  • China has been gobbling up supplies to meet its own needs
  • Hedge funds have purchased and stored a stockpile equivalent to 17 percent of last year’s global production of the metal
  • Glencore plans to double cobalt output by 2018 and will acquire 31 percent in Mutanda Mining in the DRC from billionaire Dan Gertler

Since we first wrote about cobalt in September 2016, the price of cobalt had jumped another 108% to $24.95 a pound on demand for rechargeable batteries for Electric Vehicles (“EVs”). Cobalt indeed grabbed most of the headlines over the past months. Historically an obscure and minor by-product of copper and nickel, investors started to appreciate the EVs supply chain and the critical role of cobalt in lithium-ion batteries. The Financial Times reported in February that half a dozen funds have purchased and stored a stockpile equivalent to 17 percent of last year’s global production of the metal. Most of it was bought in its physical form as it remains challenging to find pure cobalt plays outside China whilst the cobalt future contract on the London Metal Exchange is not heavily traded.

China, the world’s biggest manufacturer of electric vehicles (“EVs”), is gobbling up supplies to meet its own needs. As we wrote in a previous note,… Link to full article on Seeking Alpha