Could This Be One Of The Biggest Winners Of The Electric Car Boom? (SPONSORED POST)

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The same nightmare that haunts electric vehicle producers with massive production plans is a waking dream for cobalt/lithium explorers like LiCo Energy Metals (TSX:LIC.V; OTCQB:WCTXF), who are now poised for a breakout with a major new project in Chile that comes amid tight future supply for two of the most critical minerals of our time.  

If you thought lithium was set to soar because the future supply picture looks dire in the face of the EV explosion onto the mainstream, you might be surprised to learn that cobalt is an equally, if not more, important part of our energy future.

The lithium-ion batteries that Tesla (Nasdaq:TSLA), for one, needs to feed its electric vehicles actually use more cobalt than lithium by weight. And as it stands, automakers aren’t going to be able to produce at high demand unless they have enough batteries.

We are poised on the edge of a massive outbreak of electric vehicles; our obsession with lithium-bound consumer electrics continues to grow at blurring rate; and the powerwall and energy storage solutions are not just futuristic talk—they are already very real. 

In this dramatic world-changing backdrop, lithium-ion batteries are leading the race, and LiCo Energy Metals is strategically positioned to take part in this energy coup. But the real coup for this small-cap company is the new acquisition (this recently announced property option in Chile is subject to TSXV approval) in the main lithium exploitation artery of Chile’s mining heartland—a deal surrounded by major producers of the world’s cheapest and highest-grade lithium.

Here are 5 reasons to keep a close eye on LiCo’s cobalt and lithium exploration progress right now:

1 Critical Chemistry: The Cobalt Coup

LiCo’s Teledyne Cobalt Project is a high-grade, advanced-stage cobalt project in the heart of a historical mining district in Ontario, Canada. Covering 11 claims across over 1,368 acres, this project already boasts CAD$25 million in inflation-adjusted infrastructure.

This is why it’s really important: We need more cobalt than we’ve got, and the mass production of lithium-ion batteries at global gigafactories actually requires more cobalt than lithium.

The cobalt in this equation becomes even more valuable when you consider that almost 95 percent of global cobalt comes from copper and nickel mining, as a by-product. That makes its supply heavily dependent on copper and nickel demand and means it will be difficult to come by at a decent price.

The numbers speak for themselves. In 2015, the battery industry accounted for 41 percent of global cobalt demand, according to the Cobalt Development Institute (CDI). However, over the next 10 years, CDI expects that to increase to 65 percent, and it will be unsustainable unless new cobalt resources are brought into production.

That’s why this is a game for new explorers who are targeting specific cobalt plays with an eye to becoming a real part of this energy revolution by cornering new supply for a demand equation that shows every indication of starvation.

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Charles Howard 3 years ago Member's comment

What other stocks can benefit from the #ElectricCar craze? It's definitely the future of the auto industry.

Gary Tanashian 3 years ago Contributor's comment

Not for nuthin' but the chart of LIT (Lithium fund) is in a very bullish pattern.

Carol Klein 3 years ago Member's comment

Sounds promising! $WCTXF

Kurt Benson 3 years ago Member's comment

Interesting article. I'm curious to know what my go to expert on #lithium, Juan Carlos Zuleta, has to say about this. $TSLA $WCTXF

Harry Goldstein 3 years ago Member's comment

Interesting, I hadn't realized that more #cobalt is used in ion-lithium batteries than #lithium itself! Who knew? I'll be taking a closer look at #LiCo Energy Metals $WCTXF

Wendell Brown 3 years ago Member's comment

How rare is #cobalt relative to #lithium?

Alexis Renault 3 years ago Member's comment

"According to Bloomberg, by 2022 #ElectricCars will be cheaper than traditional vehicles."

Can't wait, though at the breakneck speed of advances in tech these days, I would have thought it would be even sooner.

Gary Anderson 3 years ago Contributor's comment

I don't feel comfortable sitting on a gigantic lithium battery. That is just a personal preference. I don't really see electric cars gaining widespread acceptance, but if the price difference is huge, there could be an expanded customer base.

Gary Tanashian 3 years ago Contributor's comment

How about a nuclear fuel rod. :-)

Gary Anderson 3 years ago Contributor's comment

I am pretty cool with cobalt 59, but any number higher could be radioactive, right? I didn't do well in Chemistry but I think I have that right, Gary. I just don't like Lithium. Also electric cars are limited in what they can do. It takes awhile to fill them up!