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https://www.edelsoninstitute.com/commodities/best-performing-metal-youve-never-heard-of/?sc=WAV-E
All the energy metals are up. But one is a clear winner.

That winner is cobalt.
Why? Because most lithium-ion batteries are cobalt-based. The system consists of a cobalt oxide positive electrode (cathode) and a graphite carbon in the negative electrode (anode). Lithium ions move back and forth from the negative electrode to the positive electrode.
Other metals are used in varying amounts, depending on what kind of battery it is.
Supply is limited. A whopping 94% of cobalt that’s mined comes as a byproduct of copper and nickel mining. This has been depressed by low copper and nickel prices, though that is changing. Over half (65%) of cobalt supply comes from the Democratic Republic of the Congo (DRC).

Macquarie Bank forecasts “a deficit of 885 metric tons is expected in 2018, with deficits of 3,205 tons and 5,340 tons expected in 2019 and 2020, respectively.” And this is happening as …

Demand Shifts into Overdrive

There have been some remarkable developments in energy metals in just the past few weeks.

• Volkswagen is going to build electric versions of all its models by 2030. To do that, VW will spend $24 billion to roll out the cars and another $60 billion for the batteries.
  
• Volvo says that, starting in 2019, every new model it releases will run at least in part on electric power. That’s only two years away!
  
• On Oct. 3, Ford’s new tech-savvy CEO, Bill Ford, is expected to make an announcement about electric vehicles.
  
• General Motors just set its own timetable to shift to electric cars. By 2025, nearly all models from GM brands in China will offer some kind of electric motor.
  

That’s to comply with a new policy announced in China. China is the biggest car market in the world. And the government announced it is going to lay out a timetable to shift completely to electric cars.

Just consider the enormity of this shift. Heck, Volkswagen produces as many cars in three days as Tesla produces all year.

Every single electric vehicle will need a li-on battery. And every battery will need cobalt.

So yeah, this electric vehicle megatrend is just getting started. This energy metals supercycle is just starting to shift out of the low gears.