The Macros Musk failed to mention

This article is pretty interesting in context of Musk's claim: "We think we can get Cobalt to almost nothing." The language was conveniently vague considering Musk's (and Tesla's) numerous motivations regarding Cobalt.

Note: Tesla's batteries are manufactured by Panasonic. It is also noted that Panasonic cancelled its cobalt supply contract with Sherritt International due US sanctions against Cuba

https://www.reuters.com/article/us-...tion-for-auto-batteries-sources-idUSKBN1JA26K

Some interesting quotes from an industry insider in the article about Panasonic's use of Cobalt:

- Panasonic's consumption this year will be about 8,000 tonnes

- Japanese battery maker Panasonic has been trying to secure supplies in the physical cobalt market, cobalt industry sources said, adding the company expects to use 10,000 tonnes next year and in 2020 and up to 25,000 tonnes per year by the early 2020s.

- “That 25,000 tonnes is a much bigger number than anybody expected. I suspect they are very concerned about cobalt supplies in the future...Panasonic are normally very cautious and conservative about their estimates. If anything, they talk it down. The 25,000-tonne number came as a shock to us.”

To put some other points to put COB's Cobalt in context into context:

- Even under ideal scenarios, there will be a shortfall of Cobalt from 2022-3
- CATL has announced plans to expand into Europe
- LG has announced a multi-billion dollar battery plant in China
- BYD just opened a plant in China - It's 140 football fields in size... To get a better idea of scale, that's about 2/3 the size of Manhattan.



Billions are being spent to build battery plants and new ones (that have not been included in forecast Cobalt demand estimates) are popping up all the time. These battery factories are geared to make NMC batteries that need Cobalt and will not be winding down any time soon.
As I've said in previous posts - LG have been announced as a strategic partner. Joe is lining up a relationship that will guarantee them supply of Cobalt and provide COB with technological know-how and capital - which are fundamental concepts for both companies. Joe is looking long-term and IMO COB holders will reap the rewards.
The Cobalt price may dip and bounce in the next year or 2, but after that, with the world's supply already ramped, it will only go one way.