Cobalt, what is it and what is all the fuss about.

Tick Tock
Feb 16, 2021
4 min read

Cobalt is critically important to the cathode composition of lithium-ion batteries. You may or may not be familiar with lithium-ion batteries. So, sit back, relax and let me show you what I have learned in opening this can of worms; how it is linked to one of the most profound industries out there and what is involved in obtaining this "RAW" element.

Over the last couple of years, cobalt has emerged as one of the most sought-after metals as it relates to the electric-vehicle revolution. The silvery-blue metal is an important material in lithium-ion batteries. As of late, it has been on a roller-coaster of a ride, making carmakers and tech giants very concerned about securing their future need for the blood diamond of batteries.

Looking at TRADING ECONOMICS we can see the full spectrum that cobalt has had in the market over the last 10 years and the forecast of what it might look like in the future. Back on March 18, 2018, cobalt was at a high trading score of 94,572.86, but it soon dropped back down to its normal trading scores between 26,000 and 40,000. I wanted to look further into the reasoning behind this spike. But first we must find out exactly what cobalt is, and where it comes from as well as what lithium-ion batteries are and what they are used for. Follow along with me as we learn together.

First we must look at what are lithium-ion batteries and what they are used for.

Lithium-ion batteries are an advanced battery technology that uses lithium ions as a key component of its electrochemistry. Just like alkaline dry cell batteries, such as the ones used in clocks and TV remote controls, lithium-ion batteries provide power through the movement of ions. I covered some of this on my show and you can watch it here.

I covered some of this on my show and you can watch it here.

What is cobalt and why it is needed for lithium-ion batteries?

I have been wondering this for a very long time and have been putting off looking into what the "big fuss" is all about with the electric car boom and what it takes to make them run. My journey has led me into researching cobalt and what it is used for. I found out that it is an element, as you can see from the picture below:

I learned that this element has been used in a variety of things other than batteries. The metal was isolated in 1735 by Swedish chemist Georg Brandt.

Cobalt compounds had been used for centuries to impart a blue color to glazes and ceramics.

Like nickel Cobalt is found in the Earth's crust only in a chemically combined form. The primary mineral feed stocks of cobalt are copper-cobalt sulfide ore, cobalt-nickel sulfide concentrate, arsenide ore, and nickel-laterite ore—all of which use a different refining process to extract the cobalt from the ore (HS 2605.00).

When I discovered that cobalt is mined in different parts of the world, I started searching exactly where it was being mined. I knew from doing other research that the Democratic Republic of Congo, (DRC), is one of the main regions this metal is mined. My research then took a turn...

As I looked into cobalt I found that many places around the world mine cobalt.

The 8 largest mines as of January 26, 2021 are listed bellow.

1. Democratic Republic of Congo - 100,000 tonnes

2. Russia - 6,100

3. Australia – 5,100 tonnes

4. Philippines – 4,600 tonnes

5. Cuba – 3,500 tonnes

6. Madagascar – 3,300 tonnes

7. Papua New Guinea – 3,100 tonnes

8. Canada – 3,000 tonnes

The largest mines around the world are in the DRC. They are measured in how many tonnes they produce a year.

The DRC's mines produce the most cobalt in the world. The total number of cobalt in the DRC is unknown. To the average consumer, this may not be of much importance and they need to wake up to the fact the world is currently in a scramble for cheap cobalt, and Congo DRC's is California gold rush of January 24, 1848.

Cheep labor is not easy to come by and that is where my digging has brought me to. Much like the gold rush people where needed. As much as we hate to admit it our history as a human race is known for enslaving people to get work done. Here in the United States we have laws against child labor. In the DRC it does have laws that protect children from being used as laborers as does most of the world. These laws are over looked it seems when it comes to the mines in the DRC. My research into these lithium-ion batteries has opened up a can of worms that I tend to get to the bottom of.

When I started digging into cobalt I found that more than 70% of the world’s cobalt is produced in the DRC, along with the child labor issue there as well. I was quick to find out that China owns 7 of the largest mines in the DRC. China has been buying up all the mines for a while now it seems. But do to the out rage of the child labor issues in the DRC. China has just recently come out and said it would not be buying from Glencore in 2018 because issues not related to these issues.

I will leave this dig here for now.

I continue this series of my adventure next time as we look into the child labor issues more tomorrow during my morning show that you can catch it here @ 10am est M-F. My Wednesday show I will cover this and the child labor issues.

Join me Thursday as we look in another component of the lithium--ion battery "nickle" and what it is used for as well. Till next time. Stay comfy and keep that popcorn handy.....

Your neighborhood digger,

Tick Tock