World’s biggest cobalt miner is gloomy on the EV metal’s future

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World’s biggest cobalt miner is gloomy on the EV metal’s future
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The world’s No. 1 cobalt miner is sounding the alarm over the shrinking role of the metal in electric vehicle batteries.

“We predict that EV batteries will never return to the era that relies on cobalt,” Zhou Xing, a spokesman for CMOC, said in an emailed response to questions. “Cobalt is far less important than imagined” and the proportion of batteries containing the metal may eventually drop to less than a tenth, he said.

Cobalt, which is also used in aerospace alloys and in the petrochemical industry, is often extracted as a by-product of digging up copper, and CMOC has been eager to mine more of the red metal as it’s bullish on it in the longer term. Hoarding cobalt to stem a decline in prices would be pricey due to the increase in expenses, such as for warehousing, according to Zhou.

“A secure and stable supply of cobalt enables us to better meet customer demand,” a CATL spokesman said in an emailed response to questions. Investing in upstream suppliers was a way “to ensure supply chain security,” however the company believes the market share of LFP batteries will continue to rise, he said.

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