Eurasian Resources Group Plans to Become Top Cobalt Producer

BloombergBusiness reported that Eurasian Resources Group Sarl (ERG) plans to become the world’s largest producer of cobalt via a $2.2-billion project located in the Democratic Republic of the Congo. CEO Benedikt Sobotka envisions the company tapping cobalt demand from companies like Tesla Motors Inc. (NASDAQ:TSLA).
As quoted in the market news:

ERG, which earlier this month agreed on $700 million of Chinese funding for the project, has started construction and aims to complete it within 20 months, according to Chief Executive Officer Benedikt Sobotka. He sees the company becoming the largest cobalt producer when full capacity is reached. Chinese producers currently vie with each other for the top spot.
Cobalt prices should advance “significantly” in the next two years as demand for the metal used in rechargeable batteries increases, Sobotka said. The battery market is expanding as more consumers turn to electric and hybrid cars and look to store renewable energy to power appliances when there’s little wind or sunshine. Daimler AG and Tesla said they plan to sell batteries storing energy to homeowners and businesses.
“Given that companies such as Tesla are expanding and increasing the use of batteries, our project has very good prospects,” Sobotka said in an interview last week.

Click here to read the full BloombergBusiness report.