What is cobalt sulphate?

Cobalt sulphate is a key raw material used in the production of cathodes for lithium-ion batteries. The cobalt market has historically been driven by battery demand from consumer electronics and superalloys, however the growing adoption of EVs has been critical to driving overall demand growth for the commodity in recent years.

 

GME graph

Source: CRU, TD Securities, Cobalt27, October 2018

Ethical production opportunities

Most of the world’s cobalt supply currently arises out of the Democratic Republic of Congo (DRC). However, due to the region’s infringement on human rights and environmental issues, key end users such as Tesla, Apple, Samsung and Panasonic are under increased pressure from socially conscious consumers to seek ethically sourced cobalt from more stable origins.