Prices are still low, and there’s a possibility that share prices will rise as the fund grows. If you’re interested in a more direct investment in mining stocks, the iShares MSCI Global Metals & Mining Producers ETF is a top choice. Its portfolio consisted of 265 global mining stocks as of mid-2024. The ProShares S&P Global Core Battery Metals ETF is a relatively new fund that exclusively invests in companies involved in the mining and production of metals used in batteries.
Glencore’s partnerships, like its deal with Electra Battery Materials for a North American supply chain, enhance its market position. Growth potential is strong, with plans to maintain high production levels into 2025, though ethical sourcing concerns in the DRC remain a risk to monitor. The development and innovation of new technologies and products that use cobalt or alternative materials. Cobalt is mainly used for the production of lithium-ion batteries, which power electric vehicles, smartphones, laptops, and other devices.
Cobalt Holdings plans London’s biggest mining IPO since 2022
According to BloombergNEF, the global electric vehicle sales are expected to grow from 3.1 million in 2020 to 26 million in 2030, representing a compound annual growth rate of 29%. This will require a massive amount of batteries, which use cobalt as a key ingredient to enhance the performance and safety of lithium-ion cells. Cobalt is also used in other applications, such as aerospace, defense, medical, and industrial, which will also contribute to the growing demand for the metal. While cobalt prices are no longer at the all-time highs they reached in March 2018, experts agree that demand remains strong. Indeed, it’s possible that lower cobalt prices will lead EV makers to favor nickel-cobalt-manganese (NCM) battery chemistries, which may improve demand and prices. However, challenges related to the security of the metal’s supply chain and a lack of investment in cobalt production continue to be key concerns in the space.
Risks of investing in cobalt
Some ETF investments include Umicore China, Lithium Americas Corp, and Glencore, among others. Climate change is partly to need an app icon let’s sell your app with one perfect icon blame for the popularity of electric vehicles today. As such, more cobalt is being refined for use in the batteries of these vehicles.
The lithium-ion battery sector in particular has become a major source of cobalt demand, and analysts expect that this sector will drive the cobalt market going forward. At the same time, cobalt supply could tighten substantially due to human rights abuses in the Democratic Republic of Congo (DRC), where most cobalt is produced. Vale also invests in developing the necessary infrastructure for transporting and transforming precious metals. The company also focuses how to buy dentacoin on R&D projects, which is interesting since Vale could find an alternative to Cobalt as prices continue to rise and battery manufacturers look for other options.
If you’re wondering how to invest in cobalt futures, you may do so under the London Metal Exchange under the ticker CO. Cobalt futures began trading in 2010 and are quoted in US dollars per tonne. You’ll find contracts that range over 15 months, which will allow you to make bets over different periods. Regardless, such a solution is still years away from mass production, and industry experts believe that electric vehicle manufacturers will still continue to rely on cobalt. If you’re an investor, the best way to take advantage of this situation is to purchase shares in companies that mine copper and nickel, and by default, also cobalt, worldwide. Like its cousin nickel, cobalt is a hard, silver-gray metal derived from the earth’s crust in a chemically combined form, except for small deposits found in meteoric iron.
- Glencore’s partnerships, like its deal with Electra Battery Materials for a North American supply chain, enhance its market position.
- This stock is not mentioned as a recommendation — on the contrary.
- These ethical concerns and the environmental impact of cobalt mining have led to increased scrutiny from investors, regulators, and consumers.
- Investing in precious metals is an excellent strategy for building a diversified stock portfolio.
- Click here to read more about lithium investing and lithium stocks.
Investing in the Top Mining Stocks
As more electric vehicle manufacturers demand cobalt, its value is projected to increase. The OECD Guidance for Multinational Companies has different due diligence requirements for companies, depending on their responsibilities and location in the supply chain. In 2019, the DRC produced the most cobalt at around 100,000 metric tons. Eastern Europe followed second in the same year, followed by Australia and the Philippines as third and fourth-largest, respectively. Today’s cobalt is produced in around a dozen countries around the world. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.
Investing in top cobalt ETFs in 2025
The company currently holds three licenses to explore 132 square miles in the Democratic Republic of the Congo. African Battery Metals is also interested in a mining project in Sierra Leone. Besides delivering high-quality refined materials, Sherritt International is also the top energy producer in Cuba. The European Resources Group is working on a new mining project in Kazakhstan and has an active exploration department to find new mining opportunities. During the development stage, the Canada Nickel Co. built the infrastructure to launch a mining operation.
However, it’s the first ETF to only invest in companies mining metals for batteries. It’s most heavily weighted towards specialty chemicals (24.6% of the fund’s holdings) and industrial gases (19.7%). However, it offers exposure to copper producers (4.6%), which also tend to produce cobalt.
Market Resources
The easiest way to invest in cobalt ETFs is to find a good online brokerage platform. There are many to choose from, and you might find that some suit your needs better than others. Brokerages also charge different fees, so you should take a close look at those extra costs before you invest. VAW holds over 100 companies and has $2,814.2 million in assets under management. There are around 100 known deposits around the world, so the supply should not be affected much by global market fluctuations.
As advancements in battery technology continue, cobalt will remain a vital ingredient in the development of efficient and long-lasting batteries for electric vehicles and renewable energy storage systems. Since cobalt is a byproduct of other mining activities, investing directly in the element outside of specific mining stocks isn’t easy. Cobalt prices are also likely to be volatile as supply and demand change from year to year. Investing in an ETF, along with other metal and base materials stocks, could be a top way to play this key ingredient in electric vehicles and batteries. Cobalt is a critical component in lithium-ion batteries used in electric vehicles (EVs), smartphones, and renewable energy storage. Brazil-based Vale, a global leader in nickel and iron, is an ancillary cobalt supplier through its copper and nickel mines.
Stocks of companies that produce such commodities can also fluctuate wildly in price. Focus on investing in established businesses with a track record of generating healthy profit margins, especially if you are an investor seeking more stable returns or investment income. This stock is not mentioned as a recommendation — on the contrary. As a development company and a penny stock, Cobalt Blue is a very risky investment with success contingent on the company getting its mining operations online. Nevertheless, if its mine does begin operations, Cobalt Blue is worth keeping an eye on as a potential leader in cobalt production. This last company is a penny stock, a common type of listing in the mining industry.
- It’s also very profitable and pays a dividend for investors looking for some investment income.
- The iShares MSCI Global Metals & Mining Producers ETF focuses on companies engaged in the extraction and production of metals and materials.
- While cobalt plays an important role in adopting more renewable forms of energy, this resource itself isn’t renewable.
- Today, this critical metal is an essential ingredient in electric vehicle (EV) batteries, energy storage systems, metal alloys and more.
Lithium has skyrocketed in investor interest in recent years due to its role in lithium-ion batteries, which are used in electronic devices such as cell phones, laptops and, of course, EVs. In fact, the EV sector has been a major demand driver for the silver-white metal. If you want to invest in metals, PICK is one of the best ETFs out there. It includes shares of more than 250 mining stocks, so it’s a fantastic way to avoid company-specific risk. It has a strong dividend growth track record overall, so it’s one of the more promising metals ETF investments. If you are looking to invest your money into metals, investing in cobalt might be worth looking into, if only as a way to how to buy linda coin stay diversified within your portfolio.