However, the rapidly growing demand has not yet peaked, according to Darton Commodities, which specialises in the sale of cobalt. "The market is expected to remain in surplus supply until forecasts of exponential growth in electric vehicle sales materialise around 2020," said its annual report. Reliance on copperAnother reason for market interest is that cobalt is largely produced as a by-product of copper and nickel mines. The LME price only reflects part of the true value of the metal, since cobalt exchanges are largely outside the public market. Financial investors, seduced by the potential for electric vehicles, may have induced a market fever, argued Darton Commodities.

Source: The Nation Bangkok February 21, 2018 04:18 UTC