Energy
The Top 10 Reasons Investors Should Look at Cobalt
Every once in a while, a previously underappreciated metal rises to prominence.
Several factors can cause this to happen: new technology, changing consumer preferences, supply constraints, or skyrocketing demand can all bring an unknown metal to the forefront of discussion.
Cobalt could be the latest metal that fits this description. It’s a crucial metal to the boom in lithium-ion battery demand, but it also has an increasingly precarious supply chain that could be very volatile moving forward.
Why Investors Should Look at Cobalt
Today’s infographic comes from eCobalt Solutions, a company focused on providing ethically produced and environmentally sound battery grade cobalt salts.
It presents the investment case for the relatively unknown metal.
With the green movement in full swing, there is compelling evidence that cobalt could be the next relatively unknown metal to rise to prominence.
Here are the top 10 reasons that investors should look at cobalt:
1. Cobalt is one of the few metals used for superalloys.
Nearly 20% of all cobalt is used for superalloys โ a class of high-tech metals that originally emerged to suit the high operating temperatures of jet engines.
There are three main superalloy types:
- Nickel-based: the bulk of alloys produced
- Cobalt-based: higher melting point gives ability to absorb stress, and corrosion resistance
- Iron-based: the original superalloy, invented prior to the 1940s
Their use has extended into many other fields โ and today, superalloys are used in all types of turbines, space vehicles, rocket engines, nuclear reactors, power plants, and chemical equipment.
2. The green economy runs on cobalt.
There are many types of lithium-ion batteries, but the vast majority of li-ions sold today use cobalt in some capacity.
In fact, by 2020 it is expected that 75% of lithium-ion batteries will contain cobalt. Why? Itโs because cobalt is the most important metal for increasing the energy density of lithium-ion cathodes.
3. โฆAnd green uses such as EVs are driving the upwards trajectory of cobalt demand.
By 2020, almost 1/5 of cobalt demand will stem from electric vehicles.
Total refined cobalt demand:
Year | Demand | % xEV batteries | % Electronics batteries |
---|---|---|---|
2010 | 64,000 | <1% | 30% |
2015 | 95,000 | 6% | 36% |
2020e | 124,000 | 17% | 31% |
Source: CRU
โCobaltโs demand growth profile remains one of the best among industrial metals peers. Its exposure to rechargeable batteries continues to play a crucial role.โ โ Macquarie
4. Getting cobalt is the hard part.
98% of cobalt is produced as a by-product of copper and nickel mines. The problem? If copper and nickel production isnโt growing, then more cobalt isnโt mined to meet demand.
5. Why not find more cobalt?
Itโs easier said than done. The vast majority of the worldโs cobalt lies in risky regions like the DRC.
Country | % Cobalt Supply in 2014 |
---|---|
DRC | 58% |
Russia | 6% |
Cuba | 5% |
Australia | 5% |
Philippines | 4% |
Madagascar | 4% |
Other | 19% |
Source: CRU
6. And so supply can tightenโฆ
Chemical cobalt โ the kind used in batteries, is expected to fall into a growing deficit over the next few years. By 2020, CRU expects that deficit to be at least 12,000 tonnes.
7. Meanwhile, the U.S. government definitely doesn’t have any strategic stockpiles.
According to the U.S Defense Logistics Agency, the government sold off cobalt all the way up until 2008. Now there is only 301 tonnes left in strategic stockpiles.
8. Cobalt was one of the best-performing metals in 2016.
Metal | 2016 performance |
---|---|
Zinc | 66% |
Cobalt | 47% |
Nickel | 17% |
Aluminum | 17% |
Copper | 17% |
Silver | 16% |
Gold | 9% |
Platinum | 1% |
Uranium | -42% |
9. Cobalt prices have been rising, but they are nowhere near all-time highs yet.
All-time highs for cobalt prices happened in 2008, after the DRC government placed restrictions on export of ores and concentrates. For a brief stint, cobalt prices even exceeded $50/lb.
The current price? Roughly $16/lb.
10. Many experts predict the cobalt market to be interesting to watch in 2017:
โJust how much cobalt is in stockpiles in China is the Million Dollar Question. Clarity here can materially affect the cobalt price.โ Chris Berry, House Mountain Partners, LLC
โThe refined cobalt market will fall into a 3,000 tonne deficit this year following seven years of overcapacity and oversupply. CRU anticipates prices to increase onward into 2017โฆโ – Edward Spencer, CRU Group
โWith this growth will come further disruption to the traditional market structures that have developed in cobalt over the last 30 years. In short, a new, more secure supply chain for the modern era will need to be created, a task that includes new mines, new refineries, and a more transparent supply chain.โ – Andrew Miller, Benchmark Minerals
Energy
Visualizing the Scale of Global Fossil Fuel Production
How much oil, coal, and natural gas do we extract each year? See the scale of annual fossil fuel production in perspective.

The Scale of Global Fossil Fuel Production
This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.
Fossil fuels have been our predominant source of energy for over a century, and the world still extracts and consumes a colossal amount of coal, oil, and gas every year.
This infographic visualizes the volume of global fossil fuel production in 2021 using data from BPโs Statistical Review of World Energy.
The Facts on Fossil Fuels
In 2021, the world produced around 8 billion tonnes of coal, 4 billion tonnes of oil, and over 4 trillion cubic meters of natural gas.
Most of the coal is used to generate electricity for our homes and offices and has a key role in steel production. Similarly, natural gas is a large source of electricity and heat for industries and buildings. Oil is primarily used by the transportation sector, in addition to petrochemical manufacturing, heating, and other end uses.
Hereโs a full breakdown of coal, oil, and gas production by country in 2021.
Coal Production
If all the coal produced in 2021 were arranged in a cube, it would measure 2,141 meters (2.1km) on each sideโmore than 2.5 times the height of the worldโs tallest building.
China produced 50% or more than four billion tonnes of the worldโs coal in 2021. Itโs also the largest consumer of coal, accounting for 54% of coal consumption in 2021.
Rank | Country | 2021 Coal Production (million tonnes) | % of Total |
---|---|---|---|
#1 | ๐จ๐ณ China | 4,126.0 | 50% |
#2 | ๐ฎ๐ณ India | 811.3 | 10% |
#3 | ๐ฎ๐ฉ Indonesia | 614.0 | 8% |
#4 | ๐บ๐ธ U.S. | 524.4 | 6% |
#5 | ๐ฆ๐บ Australia | 478.6 | 6% |
#6 | ๐ท๐บ Russia | 433.7 | 5% |
#7 | ๐ฟ๐ฆ South Africa | 234.5 | 3% |
#8 | ๐ฉ๐ช Germany | 126.0 | 2% |
#9 | ๐ฐ๐ฟ Kazakhstan | 115.7 | 1% |
#10 | ๐ต๐ฑ Poland | 107.6 | 1% |
๐ Other | 600.9 | 7% | |
Total | 8,172.6 | 100% |
India is both the second largest producer and consumer of coal. Meanwhile, Indonesia is the worldโs largest coal exporter, followed by Australia.
In the West, U.S. coal production was down 47% as compared to 2011 levels, and the descent is likely to continue with the clean energy transition.
Oil Production
In 2021, the United States, Russia, and Saudi Arabia were the three largest crude oil producers, respectively.
Rank | Country | 2021 Oil Production (million tonnes) | % of Total |
---|---|---|---|
#1 | ๐บ๐ธ U.S. | 711.1 | 17% |
#2 | ๐ท๐บ Russia | 536.4 | 13% |
#3 | ๐ธ๐ฆ Saudi Arabia | 515.0 | 12% |
#4 | ๐จ๐ฆ Canada | 267.1 | 6% |
#5 | ๐ฎ๐ถ Iraq | 200.8 | 5% |
#6 | ๐จ๐ณ China | 198.9 | 5% |
#7 | ๐ฎ๐ท Iran | 167.7 | 4% |
#8 | ๐ฆ๐ช UAE | 164.4 | 4% |
#9 | ๐ง๐ท Brazil | 156.8 | 4% |
#10 | ๐ฐ๐ผ Kuwait | 131.1 | 3% |
๐ Other | 1172.0 | 28% | |
Total | 4221.4 | 100% |
OPEC countries, including Saudi Arabia, made up the largest share of production at 35% or 1.5 billion tonnes of oil.
U.S. oil production has seen significant growth since 2010. In 2021, the U.S. extracted 711 million tonnes of oil, more than double the 333 million tonnes produced in 2010.
Natural Gas Production
The world produced 4,036 billion cubic meters of natural gas in 2021. The above graphic converts that into an equivalent of seven billion cubic meters of liquefied natural gas (LNG) to visualize it on the same scale as oil and gas.
Here are the top 10 producers of natural gas in 2021:
Rank | Country | 2021 Natural Gas Production (billion m3) | % of Total |
---|---|---|---|
#1 | ๐บ๐ธ U.S. | 934.2 | 23% |
#2 | ๐ท๐บ Russia | 701.7 | 17% |
#3 | ๐ฎ๐ท Iran | 256.7 | 6% |
#4 | ๐จ๐ณ China | 209.2 | 5% |
#5 | ๐ถ๐ฆ Qatar | 177.0 | 4% |
#6 | ๐จ๐ฆ Canada | 172.3 | 4% |
#7 | ๐ฆ๐บ Australia | 147.2 | 4% |
#8 | ๐ธ๐ฆ Saudi Arabia | 117.3 | 3% |
#9 | ๐ณ๐ด Norway | 114.3 | 3% |
#10 | ๐ฉ๐ฟ Algeria | 100.8 | 2% |
๐ Other | 1106.3 | 27% | |
Total | 4,036.9 | 100% |
The U.S. was the largest producer, with Texas and Pennsylvania accounting for 47% of its gas production. The U.S. electric power and industrial sectors account for around one-third of domestic natural gas consumption.
Russia, the next-largest producer, was the biggest exporter of gas in 2021. It exported an estimated 210 billion cubic meters of natural gas via pipelines to Europe and China. Around 80% of Russian natural gas comes from operations in the Arctic region.
-
Markets3 days ago
Charted: Tesla’s Unrivaled Profit Margins
-
Technology2 weeks ago
Ranked: The Top 50 Most Visited Websites in the World
-
Datastream3 days ago
Ranked: The Top Online Music Services in the U.S. by Monthly Users
-
Money4 weeks ago
Visualizing $65 Trillion in Hidden Dollar Debt
-
Automotive2 weeks ago
The Most Fuel Efficient Cars From 1975 to Today
-
Datastream10 hours ago
Super-Sized Bets for Football’s Big Game (2013-2022)
-
Technology4 weeks ago
Prediction Consensus: What the Experts See Coming in 2023
-
VC+1 week ago
Get VC+ Before Prices Increase on February 1st