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There was a time when gold attracted researchers to the old western United States. United Today, there is another precious metal that causes a similar fever: cobalt
Cobalt extraction is not yet widespread in the United States. But a number of mining companies are claiming rights in the Idaho, Montana and Alaska regions in search of bluish-white minerals.
There are extraordinary examples of growing interest in cobalt, a key component of lithium-ion batteries. that power electronic devices and electric cars
In the past, cobalt supply depended on the markets for copper and nickel, which were more valuable metals and are usually extracted with cobalt. But with the increase in cobalt prices and projections of its consumption – which indicate an increase of 8 to 10% per year – its status as a secondary product began to change, according to George Heppel, senior badyst at CRU Group at London
About 300 companies in the world are now, looking for cobalt deposits, calculate RAW. The giants of
mining
and Glencore also increase their production in the Democratic Republic of Congo (DRC), where most of the world's cobalt is found.
In the United States, limited production of cobalt began in 2014 for the first time in four decades. Canadian-based company First Cobalt purchased a mine in Idaho in March and is expected to begin mining it. in about three years.
Cobalt, more than copper or other metal, is the main focus of the mine, according to CEO Trent Mell: "Miners like us have never really been looking for cobalt," he says. he. "There is a lot of cobalt in the world, and as miners we are late."
Although it is likely that According to badysts, a shortage is imminent in 2022.
Market dynamics helped to boost confidence, says Fiona Grant Leydier, of eCobalt, who has resurrected plans for their own cobalt mine in Idaho that were discussed in the 1990s.
The company, formerly called Metals Training, is expected to start producing. here the end of next year. "The fundamentals of the cobalt market are extremely strong, as they have never been before," says Grant Leydier. "We are very interested in financiers, potential partners and potential employees."
Dependence
After extraction of cobalt-containing ore with the aid of explosives, it is refined and processed into metal, mixtures or chemical concentrates for use in products such as marine engines. planes, drones and batteries.
The world's cobalt is mined in the DRC, but China is the world's largest producer of refined cobalt. But as demand for cobalt has increased, US fears of their dependence on imports have increased.
In February, the United States included cobalt in the list of 35 minerals considered crucial for the economy. Active companies in this country say they expect their "made in the United States" status to help them accelerate the government's approval of their plans and differentiate their product from imports.
They badure that fears of corruption and child labor Mines in the DRC have also pushed buyers to find new sources of supply.
"There are few places where we can extract cobalt ethically and we want to be part of it," says Michael Hollomon, CEO of Missouri Cobalt. . "We would like to believe that it gives us an advantage."
The company plans to start producing cobalt in an old lead mine in Madison County, Missouri this summer. It has been estimated to be 35 million pounds of recoverable cobalt, making it the largest reserve of its kind in North America.
However, the realities of where large deposits of high quality cobalt are found globally, mean that the United States will never be able to stop completely from importing cobalt . In fact, badysts expect the DRC's share of global production to increase as mining companies expand their operations in that country.
China is also expected to remain the world's leading cobalt refiner. they are opening new facilities in Europe, North America and in other parts of Asia.
Even though US companies represent only a small fraction of the market, they could get an exorbitant price for their materials, says Caspar Rawles, an badyst at Benchmark Mineral Intelligence. "Every company in the supply chain is looking to reduce its geopolitical risk, so I think any project outside the DRC is in a strong position in this regard," he says.
The challenges remain significant, with the cost of establishing a mine that can reach hundreds of millions of dollars. The volatile price of cobalt presents another uncertainty.
Meanwhile, rising cobalt prices are pushing companies to find ways to reduce their dependence on minerals. Gerbrand Ceder, from the University of California at Berkeley, is researching ways to create stable batteries that do not require large amounts of cobalt.
However, he says that the deployment of this technology on a large scale and in 10 years. "I think in the future there will still be a lot of cobalt," he says.
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