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VIDEO - McKinsey: More EVs Means Cobalt is Fine for Now
To get more insight about the outlook for battery metals, INN caught up with Ken Hoffman of McKinsey at this year’s PDAC convention.
The full impact of the coronavirus outbreak on the battery metals market is yet to be seen, with many continuing to question the high dependence that supply chains have on China.
To get more insight on the outlook for battery metals, the Investing News Network caught up with Ken Hoffman of McKinsey at this year’s Prospectors & Developers Association of Canada (PDAC) convention.
“The biggest impact that you will hear is this term ‘localization,’” he said on the sidelines of the show. “That instead of the world relying on its battery materials coming from China … (the) coronavirus has pointed out the weakness of the global value chain.”
“You are seeing very rapid movements of battery technologies,” he said. “Things we thought would happen in 2025 are now happening in 2021.”
Hoffman also talked about the big shift in interest in Europe.
“This is the first year we’ve seen Europe have an interest in electric vehicles (EVs), with new policies, new plans … EVs are becoming a real reality in Europe,” he said.
The expert also shared his thoughts on nickel and cobalt’s future in batteries.
“You will start to see 1,000 kilometer range cars, and in order to get 1,000 kilometer cars, which is what the public wants, then you are going to have to use a nickel-cobalt-manganese battery,” he said.
Hoffman touched on the trend to move to cathodes with higher nickel and the future for cobalt.
“Car companies are ramping up production, so even if there’s less cobalt there’s more units, so for the time being cobalt is okay,” he said.
Watch the video above to learn more about Hoffman’s thoughts on battery metals. You can also click here for our full PDAC playlist.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.