Cobalt Is the Precious Metal of the Future . . . But You Can’t Make Much Money from It Yet
Cobalt is used in batteries that power phones and other rechargeable devices. It is also used in the batteries that power electric and hybrid cars. It could be the precious metal scrap of the future.
How much cobalt is found in, say, a battery that powers a Tesla? According to that carmaker, cobalt makes up only about 5% of the weight of its batteries. Furthermore, Tesla and other makers of electric vehicles are trying to reduce their use of cobalt because it is scarce and doggone expensive. Tesla is trying to find ways to eliminate cobalt entirely and shift to lithium-ion batteries. Why? Because although lithium is scarce, it is not as scarce as cobalt.
So, when will you be able to profit from reclaiming used cobalt batteries? Will you ever be able to do that? In our post today, we are going to provide some answers.
What are the sources of cobalt?
According to The Cobalt Institute, the vast majority of the cobalt that is used in batteries is a byproduct that is reclaimed when copper and nickel are mined in many countries around the world, including Canada. The metal is also mined from cobalt mines – mines that have been established with the primary purpose of extracting cobalt from the earth.
The Democratic Republic of the Congo produces more cobalt from cobalt mines than any other country does. According to an article in The New York Times on November 21, 2021, “A Power Struggle Over Cobalt Rattles the Clean Energy Revolution,” Chinese and American companies are now battling over ownership of cobalt mines located there. Due to the growing number of electric cars, it seems that demand for cobalt is about to surge.
But will that happen? It is not a sure thing. Because of the scarcity of cobalt, carmakers like Tesla are trying to find ways to reduce the cobalt content of batteries by substituting other metals.
Is mining cobalt a clean, green process?
The answer is, no. Cobalt mines release noxious chemicals into streams, groundwater, and the atmosphere. Furthermore, miners who work in cobalt mines are engaged in hazardous work.
So even though many of us think of electric cars as “zero emissions” vehicles (and they are at the tailpipe), the production of cobalt is not good for the environment.
How much cobalt is now available as scrap?
The answer is, very little. However, if we look ahead to a time when half of all new cars or more are powered by batteries, we can predict that cobalt will one day become a “hot” recyclable. But other variables come into play that could affect the availability of cobalt scrap. Again, companies like Tesla are trying to reduce the use of cobalt in car batteries.
When a battery pack outlives its usefulness, does it still contain cobalt that can be reclaimed?
Even when a car’s battery pack gets tossed, it will still contain small amounts of cobalt (as well as lithium). But at some point in the future, will there be piles and piles of used cobalt-containing batteries waiting to be claimed and recycled?
We would like to provide you with a definite answer to that question, but the fact is, we do not know because several variables apply, including these . . .
Will cobalt continue to be used extensively in automotive batteries, or will alternatives be developed?
Will electric car makers like Tesla and others institute programs to claim and recycle used batteries and the valuable substances they contain? (It seems likely they will.)
How big will the demand for cobalt become? What percentage of that demand will be met by newly mined cobalt, what percentage by recycling? Again, we will have to wait to find out.
Why are we writing this post at a time when you can’t make much money by recycling cobalt?
We are writing about cobalt because it, like hybrid car technology, is a trend to watch. When we watch trends and envision how the world of precious metals will change, we empower ourselves to make more money in the future by recycling precious metals.
But what about today? If you have automotive and other batteries to recycle, talk to us. Our precious metal recycling consultants are available at 800-426-2344 to answer your questions today.
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