Cobalt is a metallic chemical chemical element found in the earth'south crust. While cobalt is cipher new, it will be more in-demand in the coming decades. Its primary use is in lithium-ion batteries, which are used in electric vehicles (EVs). As EV production grows, then, too, will lithium-ion batteries. Thus, lithium output should increment in the years ahead.

With an increase in need comes opportunity, both for companies and investors. This list will take a await at some of the best cobalt stocks to buy today as the EV race continues to estrus up.

best cobalt stocks and mines

Superlative 5 Cobalt Stocks to Add to Your Portfolio

Cobalt production will demand to scale up to encounter the growing demand in EVs. These five cobalt stocks are already leading the way:

  • Glencore (OTC: GLNCY)
  • Vale (NYSE: VALE)
  • Wheaton Precious Metallic Corp. (NYSE: WPM)
  • People's republic of china Molybdenum Co., Ltd. (HKSE: 3993.HK)
  • Carpenter Technology Corporation (NYSE: CRS)

Let'south accept a closer look at each of these stocks. Y'all'll run into why they are some of the top cobalt stocks today.

Glencore

Glencore, is an obvious choice hither as it is i of the largest producers of cobalt in the world. This makes information technology an excellent cobalt stock. The Anglo-Swiss multinational, In 2020, Glencore produced 27.iv kt of cobalt. That accounts for xx% of the global product. Most of this production is a past-product of its Katanga and Mutanda copper mines.

According to Glencore's 2020 annual report, its EBITDA for the year was $xi.6 billion and its revenue was $142.34 billion. It did, however, suffer a internet loss of $1.9 billion. It employs 135,000 people and operates in 35+ countries.

Vale

Brazillian multinational mining company Vale S.A. is the largest producer of iron ore and nickel in the world. While those are the biggest parts of its concern, it is also engaged in manganese, copper, kaolin, and yes, cobalt. In 2020, Vale produced 4,672 metric tons of Cobalt. Its cobalt is a past-product of its nickel product at mines in Sudbury, Thompson and Voisey'south Bay in Canada and other areas.

Vale is too one of the virtually valuable companies in Latin America. Its revenue in 2020 topped $40 billion with shut to $5 billion in net income. Currently, only 1% of Vale's revenue comes from cobalt, but that may increment every bit cobalt demand increases worldwide.

Wheaton Precious Metals

Vancouver, Canada-based Wheaton Precious Metals is another non-direct cobalt stock. It specializes in gold and silver. In 2016, it produced 30.four meg ounces of silver and 357,300 ounces of gilded.

Although Wheaton has not produced much cobalt in the by, it recently purchased cobalt production from Vale. Every bit a result, it will claim 42.four% of the cobalt production of the Voisey's Bay mine in Canada. This will continue until 31 million pounds of cobalt, and so it will receive 21.2% of the production thereafter.

Wheaton'south revenue in 2020 was $248 million with a cyberspace income of $105.8 one thousand thousand. Currently, information technology has 14 "streams," which allow it to produce various metals. Also, it has 24 operating mines and eight development projects currently in the works.

China Molybdenum Co.

Every bit its proper noun implies, China Molybdenum (CMOC) is the largest producer of molybdenum in Mainland People's republic of china. And yet, it is top 5 in the earth for molybdenum product. Meanwhile, it is the second-largest producer of cobalt in the world. This makes it one of the top cobalt stocks around. It is also the world's leading copper producer.

CMOC is betting big on cobalt. It was already the majority holder in the Tenke Fungurume Mine when it was role of a bargain that immune information technology to merits eighty% of the mine's product. Then, in 2021, it appear a $2.51 billion plan which would double copper and cobalt production at the mine. This mine is in the Congo-kinshasa (DRC), which is the world'south chief source of cobalt.

In 2020, its revenue was ¥113 billion and its cyberspace income was over ¥2 billion. It is based in Luoyang, China, and had nearly 11,000 employees as of 2020.

Carpenter Technology Corporation

Carpenter Technology is some other one of the top cobalt stocks. It's based in Philadelphia, Pennsylvania and develops, manufactures and distributes stainless steels and corrosion-resistant alloys. Its products as well include titanium, nickel-copper and nickel-cobalt.

Currently, cobalt is not the biggest source of revenue for Carpenter. The majority of its revenue comes from the aerospace and defence industry. Information technology's besides a smaller company with a marketplace cap around $one.5 billion. Its revenue was over $2 billion in FY2020. It also has over $iii billion in assets.

Why is Cobalt So In-Demand?

As mentioned in a higher place, cobalt is seeing increasing demand because it is used in lithium-ion batteries. These batteries are used in electric vehicles. Simply, of class, there are other metals, so what makes cobalt special?

Equally mentioned, cobalt is used in the production of lithium-ion batteries. But you might wonder why cobalt is necessary, given that information technology isn't fifty-fifty in the proper noun of li-ion. And so, why is cobalt used? Mainly because it helps increase the energy density of battery packs. This is of import in electric vehicles because, without sufficient energy density, batteries get too heavy and aren't feasible to employ in consumer vehicles.

Energy density has long been a problem with batteries. For all its problems, gasoline is most 100 times more energy-dense than a typical lithium-ion battery. Thus, increasing the energy density of batteries is a must. EVs are more free energy-efficient than internal combustion engines. Even so, manufacturers accept to make up for the lower energy density of batteries.

Are At that place Alternatives to Cobalt?

Keep in heed that while cobalt is expected to grow in production, that isn't entirely certain. And this could pose a risk for cobalt stocks. As mentioned earlier, the largest source of cobalt globally is the DRC. That has led some to raise questions about potential human rights violations around cobalt mining. Cobalt also happens to be a toxic metal, farther complicating things.

However, researchers are working to not merely improve the energy density of Li-ion batteries but to reduce or even drop cobalt. For instance, a team of researchers at the Academy of Texas reported the test results of a new cathode chemical science that is cobalt-gratuitous.

The chemistry used a nickel-rich cathode and an experimental lithium-ion pouch cell. Energy density was slightly reduced, simply charge times were not. Importantly, the battery maintained its life well over 1,000 accuse cycles – another purpose cobalt often serves.

Other projects, such every bit cobalt-complimentary solid-land batteries, are also promising. While this is all early research, for now, information technology does have the potential to modify how lithium-ion batteries are made.

Cobalt Stocks: The Bottom Line

At the moment, the future looks brilliant for cobalt, with need expected to double past 2030. Countries effectually the earth accept set ambitious targets to either increase electric vehicle sales or phase out internal combustion engine vehicles entirely. Cobalt is also rare, meaning those that ain the means of production now are well-positioned going forrard.

All the same, that is non to say there aren't risks for cobalt. Concerns about its toxicity and its source in key Africa take raised concerns near an increase in production. While cobalt is key to battery product today, research is ongoing that aims to reduce or fifty-fifty eliminate cobalt from batteries. Cobalt production is probable to increment for the adjacent several years, but whether it will keep to grow forever is less certain.