Cobalt continues to be a hot commodity in 2018, with many carmakers and technology companies trying to strike deals directly with miners to secure long-term supply.
Apple (NASDAQ:AAPL), Volkswagen (FWB:VOW) and BMW (ETR:BMW) are just some of the companies that have joined the race for cobalt, a key element in the lithium-ion batteries used to power electric cars.
With demand for electric cars set to surge in the years to come, the need for cobalt is expected to grow. As a result, prices have increased more than 150 percent since the beginning of last year and currently stand at around $35.80 per pound.
“We expect demand to outpace supply for cobalt in the long-term, with the market already tight and prices rallying,” Eight Capital analysts said, raising their long-term cobalt price from U$35 to U$42 per pound.
With that in mind, investors interested in the cobalt market continue to look for ways to jump into the market. Here, the Investing News Network looks at the four cobalt stocks to watch identified by Eight Capital analysts David Talbot and Joe Fars. All stats were accurate at close of day on February 22.
1. eCobalt Solutions (TSX:ECS)
Current price: $1.28; year-to-date movement: -34.36 percent
eCobalt Solutions is focused on providing clean cobalt products essential for the rapidly growing rechargeable battery and renewable energy sectors, made safely, responsibly, and transparently in the United States. eCobalt’s primary asset is its Idaho cobalt project, located in Lemhi County, Idaho.
2. Cobalt 27 Capital (TSXV:KBLT)
Current price: $13; year-to-date movement: +5.69 percent
Cobalt 27 Capital is a minerals company that offers pure-play exposure to cobalt. The company intends to acquire and hold physical cobalt, as well as manage and grow a cobalt-focused portfolio of streams, royalties and direct interests in mineral properties containing cobalt.
3. US Cobalt (TSXV:USCO)
Current price: $0.68; year-to-date movement: +13.33 percent
US Cobalt, formerly Scientific Metals, is an exploration company focused on the acquisition and development of production-grade deposits of metals that are critical components of modern-day rechargeable batteries. Its Iron Creek cobalt property is located in Idaho along the Idaho Cobalt Belt.
4. First Cobalt (TSXV:FCC)
Current price: $1.10; year-to-date movement: -11.29 percent
First Cobalt, formerly Aurgent Resource, is an exploration-stage company whose main focus is the South Lorraine cobalt claim group. The claim group is in a former mining camp located 25 kilometers south of Cobalt, Ontario. The company also owns the Dickens Lake gold property in Saskatchewan.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.