For EV makers, the blue metal is a double headache: it’s likely...

For EV makers, the blue metal is a double headache: it’s likely to be central to lithium ion battery packs for the foreseeable future, and three-quarters of it comes from a single, tricky place – the Democratic Republic of Congo. For Western manufacturers like Tesla (TSLA.O)and VW, that’s an even bigger pain: Chinese firms control well over half of cobalt output from the chaotic African state, accounting for more than 40% of the 130,000-odd tonnes mined globally each year. In the DRC, London-listed Glencore (GLEN.L) digs up most of the rest.Currently, manufacturers rely on long-term purchase agreements for their cobalt, around 10 kilogrammes of which sits in the average EV battery. However, the scramble for Covid-19 vaccines has shown this is not without risk. The International Energy Agency thinks a carbon-free economy may mean cobalt demand rising 30-fold, dwarfing this year’s 60% price spike. And after falling victim to the global chip shortage, carmakers are hypersensitive to supply chain snafus. QUOTE
COB in strong position IMO.

https://www.reuters.com/breakingviews/cobalt-angst-will-turn-carmakers-into-mine-owners-2021-05-10/