08 March 2017
A recent 50% hike in the market price of cobalt is due to speculators stockpiling rare metals in anticipation of higher demand for electric cars. Six international hedge funds have bought 6000 tonnes of cobalt, worth $280 million and representin 17% of last year’s entire production. Plans by Chinese carmakers for further electrification along with Tesla’s commitment to more sales volume has increased market confidence for growing demand for cobalt. Global demand is expected to exceed supply by 900 tonnes this year. In 2015 cobalt was priced at $10 per pound and now its $21. Glencore, who controls a third of the cobalt market, said that each dollar rise in the price generates $55 in earnings for the company.