The lithium ion battery market is expected to grow in value over the coming years. Cobalt is one of the main compounds implemented into rechargeable batteries, and it is a market that is facing a supply shortage. According to a report by Transparency Market Research, the growth of the global cobalt market can be attributed to the rising demand for lightweight electric cars, which are becoming more popular and reliable. A research by Markets and Markets projects that the lithium ion battery market is expected to be valued at USD 68.97 Billion by 2022, growing at a CAGR of 16.6% between 2016 and 2022.
Consultants CRU Group Senior Consultant, Edward Spencer explained, “In terms of overall demand, EVs (electric vehicles) only consumed around 6.5 percent of refined cobalt in 2016. This will increase to 16.9 percent in 2021 helping lift demand to nearly 130,000 tonnes. We expect a deficit in the region of 900 tonnes this year. However, a far larger deficit could open quickly if mine and refinery capacity growth fails to keep pace,” Reuters reported. Analysts at Macquarie Research estimated significant cobalt deficits by the end of the decade – 3,205 tonnes in 2019 and 5,340 tonnes in 2020. “Cobalt has limited new supply projects coming through. Meanwhile refined output in key supply countries such as Australia, Russia and Zambia are well down on levels seen a decade ago,” Macquarie analyst, Colin Hamilton said according to Reuters.
First Cobalt Corp (OTC: FTSSF) is focused on building a diversified global portfolio of assets that are highly leveraged to the cobalt market. Recently, the company announced the addition of Jason Rickard, MSc., P.Geo. to the new position of Exploration Manager for the Ontario Cobalt Camp. Jason was previously a Senior Geologist for Goldcorp Inc., managing a 100,000+ metre drill program at their Borden Project in Ontario and leading the regional exploration program. This is a key addition to the exploration team as the merger transactions with Cobalt One and CobalTech will give First Cobalt a dominant land position in the Cobalt Camp and provide several additional targets for follow up.