American Resources Corporation reposted this
Is copper demand the death of cobalt prices? Copper demand is forecasted to continue its strength in the market and demand given the growth of the electrified economy (data centers, AI, etc.). This creates an interesting dynamic in the market, especially for #cobalt given they sit in situ in the mineral fields. As the demand for #copper continues to drive production, this means excess #cobalt extraction as a byproduct will continue to put significant pressure on the price of #cobalt. Ultimately, this dynamic is good for industry as it results in lower prices for Lithium ion battery manufactures (NMC chemistry). Furthermore, the electrified industry is moving as aggressively as it can way from NMC chemistries for lithium ion batteries which means that #cobalt prices (despite price controls in the DRC and elsewhere) will continue to see downward pressure on the price of #cobalt. Just because shipments are being curtailed to help stop the decline, given it sits alongside copper in the mines the production doesn't stop (its a byproduct). Essentially our believe is Copper continues to remain strong due to demand and #cobalt will remain week due to oversupply as a byproduct of #copper demand. American Resources Corporation ReElement Technologies
With copper demand expected to double by 2030, the United States must focus on responsible domestic production to decrease reliance on foreign imports, and the current administration has signaled its commitment to expanding domestic mining efforts. Projects like Twin Metals Minnesota LLC’s proposed Copper-Nickel-Cobalt Mine, NewRange Copper Nickel’s NorthMet Project, Resolution Copper’s proposed copper mine in Arizona, and the proposed Pebble Mine in Alaska present a significant opportunity to bolster U.S. copper production. These developments have the potential to provide high-wage jobs, contribute to economic growth, and ensure that the materials critical to our energy transition are produced under the world’s best environmental and labor standards. Despite America’s ample copper reserves, our country lags behind global competitors in refining and processing capacity. For too long, bureaucratic delays and regulatory uncertainty have stalled projects that could play a key role in securing a stable copper supply. Investing in domestic mining and permitting reform will reduce dependence on foreign producers and put America at the forefront of responsible mineral development. To read the referenced article, please visit the link below: https://lnkd.in/g4A_R-6Q