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Cobalt price rally ‘could last for another two years’
Cobalt prices are expected to enjoy a considerable uplift over the next two years as end-users race to secure future supplies. The rise of the electric vehicle industry is a key driver behind increased cobalt demand.
Canaccord Genuity forecasts $40 per pound in 2018 and $50.44 per pound in 2019. Those estimates represent a 32% and 61% increase respectively on forecasts only made four months ago.
More than half of all cobalt demand comes from battery chemical products. Canaccord says it is becoming increasingly evident that key customers will look to provide financing or direct equity investment to help develop new sources of mine supply.