The hottest thing in the markets right now is an obscure metal mined in DR Congo
- RCS Ottawa
- May 1, 2017
- 1 min read
The financial markets have an unlikely new hero. In recent months, the best way to make a serious amount of money in a short amount of time has been to buy cobalt. The price per ton of the metal has soared by almost 70% already this year, driven by a near-insatiable demand for rechargeable batteries and the growing popularity of electric cars.
Cobalt is a key ingredient used in lithium-ion batteries that power everything from Apple products to Tesla cars. As it happens, the great cobalt boom of 2017 follows a bumper year for lithium, which rose by around 80% in price in 2016.
Bullish investors have pushed Tesla and Apple stock to record highs, but a steady supply of cobalt will be crucial to making their plans a reality. In part, fears about cobalt’s scarcity are behind the metal’s recent price surge. Cobalt is hard to get a hold of, and the market remains relatively small—93,000 metric tons were produced in 2016.
