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Lithium's Other Half... The One You Don't Hear About


Written by Alex Koyfman
Posted October 20, 2016

Whether you invest or not... whether you follow market trends or not... unless you've been living under a rock for the last five years, you've almost definitely heard about lithium-ion batteries.

They power everything from electric cars right on down to the cell phone in your pocket and everything in between.

And if you've heard of lithium-ion batteries, you've also heard a thing or two about the metal that gives these batteries their name: lithium.

There's one thing about lithium and lithium-ion batteries that very few people know, however.

You see, there's another metal in this equation that you almost never hear about...

Cobalt.

cobalt

Famous for its deep blue color, this metal is almost universally overlooked for its industrial utility.

Even the savviest tech junkies out there don't know or understand that lithium-ion batteries are just as dependent on cobalt as they are on lithium.

The diagram below plainly illustrates the dynamic between these two metals and why, without either one of them, all you'd have is a worthless pile of plastic and wires.

lithiumcobalt

It remains a mystery to me why cobalt has not received the sort of media coverage that lithium has.

Perhaps it's because of the name chosen for the battery, which could just as easily and just as accurately have been "lithium-cobalt" instead of "lithium-ion."

Or perhaps it's because lithium as an element is more commonly used and is therefore more commonly recognized among the lay people within the consumer base.

The answer may never be clear, but what we do know beyond a doubt is that the cobalt-lithium combination is what gives these batteries the qualities most appealing to consumer electronics.

One Major Advantage: Two Essential Ingredients
Simply put, the main characteristic of a cobalt-based battery is its high energy density.

The resulting long run-time makes this chemistry attractive for cell phones, laptops, cameras, electric vehicles, and a laundry list of other modern devices and products.

Because of the high energy density of these cobalt/lithium batteries, the market for lithium has exploded in the last several years, right along with the price.

lithiumpricechart

Big names like Elon Musk have done their share of cheerleading for the metal as well, as demand for the batteries and the devices they power has seen unprecedented expansion.

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Right now, analysts are projecting that this growth pattern will continue and even accelerate for at least another 10 to 15 years.

As of this moment, however, cobalt prices, which one would expect to mirror those of lithium, have, at best, remained flat.

cobalt prices

Once again, the reason behind this continues to baffle those in the know, but one thing is for certain: this pattern cannot persist for much longer.

Demand continues to soar with every consumer product that enters the market, which means that unless modern civilization swears off cell phones, tablet PCs, laptops, cameras, and everything else portable that requires a charge to function, cobalt will become more and more necessary.

Of course, there are always individuals who spot these trends before they become trendy, and there are always investors and venture capitalists who put their money into those future trends.

Which is exactly what's already starting to happen with cobalt.

The Opening Stage is Here... Today
Though it's still too early to come on the radars of any major investment banks, hedge funds, or institutions, the cobalt market is quietly, discreetly becoming the focus of a handful of long-sighted industrialists as the next big commodity craze.

A few weeks ago, I became aware of a mining exploration company doing just that.

This company, which had focused its operations on lithium exploration, recently reorganized to concentrate on both of the metals essential to lithium battery production — ahead of the mainstream market.

The company's owners and investors saw the opportunity and decided to strike while the iron was hot to leverage this still-nascent bull market, while at the same time maintaining the lithium exploration side of its business model for the sake of stability.

It was a perfect blend of stability and prospect at a time when almost nobody was bothering to diversify.

Everyone else is continuing to ride the lithium-only train, even though by now it should be clear that the most aggressive period of gain for that sector is in its waning stages.

I was fairly astounded when I heard the story. It felt like I was looking into a crystal ball and seeing the next several years unfolding before my eyes.

And the best part: anticipating where this market would go from here was as simple as looking back at the lithium price chart, because cobalt would have no choice but go in the same direction.

I did my due diligence and wrote up a report detailing this company's plans and prospects.

Today, I'm opening access to this report up to a select few readers.

Click here and get the rest of this story before the mainstream media pounces on it the same way it did to lithium a decade ago.

Fortune favors the bold,

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Alex Koyfman

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Coming to us from an already impressive career as an independent trader and private investor, Alex's specialty is in the often misunderstood but highly profitable development-stage microcap sector. Focusing on young, aggressive, innovative biotech and technology firms from the U.S. and Canada, Alex has built a track record most Wall Street hedge funders would envy. Alex contributes his thoughts and insights regularly to Wealth Daily. To learn more about Alex, click here.

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