Tesla Motors’ GigaFactory to Positively Impact Cobalt Demand

Global Cobalt Corp. (TSXV:GCO) reported that Tesla Motors Inc.’s (NASDAQ:TSLA) planned GigaFactory, which is set to be the biggest battery factory in the world, will be positive for cobalt demand.

As quoted in the  market news:

This increase in battery output will require a significant amount of raw materials needed to build its batteries.  Demand dynamics for materials such as cobalt, lithium, aluminum and copper will surely be impacted by the unparalleled scale of Tesla’s GigaFactory.  Tesla plans to be producing about 1,000 electric cars a week by the end of 2014 at its Fremont Factory, up from about 600 a week. By 2020, the future Giga Factory is expected to produce enough batteries for 500,000 Tesla electric cars a year, which is the approximate capacity limit of the Fremont Factory. CEO Musk expressed his best guesses for future demand for the Model S and X, estimating about 1,000 a week for each.  Rounded these figures are estimated to be 50,000 S, 50,000 X and 400,000 Gen III by 2020.  With roughly 6-9kg of cobalt used in very lithium-ion electric vehicle battery the demand for cobalt may prove to be enormous.

Click here to read the full report from Global Cobalt Corp. (TSXV:GCO).