Tesla's Potential North American Battery Metals Supply Chain Contenders -- Cobalt

Jervois Mining [ASX:JRV] [TSX-V: JRV] (OTC: JRVMF) [FRA: IHS]
(merged with eCobalt Solutions [TSX:ECS] (OTCQX:ECSIF))

Jervois Mining would be a front running cobalt junior for a Tesla contract as they have a high grade cobalt project on US soil. Their Idaho Cobalt Operations ('ICO') is at an advanced stage and can produce valuable copper and gold by-products.

First Cobalt [TSXV:FCC] (OTCQB:FTSSF)
First Cobalt offers 3 projects in 1 - Their Idaho USA copper/cobalt sulphide project, their Canadian cobalt/nickel refinery, and their potential bulk tonnage cobalt operation in the Canadian Cobalt Camp. First Cobalt hopes to have their North American cobalt/nickel refinery operational with ore feed from Glencore by 2022. A great valued junior miner with a decent chance at a future Tesla supply contract.


 * First Cobalt Offers Three Projects For The Price Of One

First Cobalt is a North American cobalt company and owner of the only permitted primary cobalt refinery in North America. The Company is exploring a restart of the First Cobalt Refinery in Ontario, Canada, which could produce over 25,000 tonnes of cobalt sulfate per year from third party feed.

Fortune Minerals [TSX:FT] (OTCQB:FTMDF)
Fortune Minerals is developing their vertically integrated NICO gold-cobalt-bismuth-copper project in the Northwest Territories of Canada. Their 1.1m ounces of gold and good progress on Tlicho All-Season Road construction help improve their chances.


 * An Update On Fortune Minerals

Global Energy Metals [TSXV:GEMC] (OTC:GBLEF)
GEMC is a super low market cap company with 4 early stage projects (1 in USA, 2 in Australia, 1 in Canada), with potential for cobalt, copper, nickel, and gold. Interestingly, their 85% owned USA project is in Nevada (Lovelock Mine & Treasure Box Projects). Also most appealing is their higher grade cobalt (Indicated: 57.9kt @ 0.51% Co & 0.25% Cu, Inferred: 6.3t @ 0.48% Co & 0.14% Cu) at their 70% owned Werner Lake Cobalt Project in Ontario, Canada.

An outside chance, but huge upside for investors if a Tesla supply contract arrives. Market cap is a staggeringly low C$2.37m.


 * Global Energy Metals Corp. Has 3 EV Metal Related Combined Projects And A Very Low Market Cap Of Just C$2.5m

Canada Silver Cobalt Works Inc. [TSXV:CCW] (OTCQB:CCWOF)
The company is currently focused on silver at their Ontario projects; however, there is potential for cobalt, nickel, gold and copper by-products. You can read more here.

FCX:
The most strategic US asset in the cobalt industry is Freeport Cobalt (owned by Arizona’s Freeport McMoRan Inc) which owns the only major cobalt refiner outside of China, but still acquires 100% of its raw material from the DRC – a Chinese run mine that it used to own.

Glencore (LSE:GLEN,OTC Pink:GLCNF )
Glencore International, the company was already one of the world's leading integrated producers and marketers of commodities. It was the largest company in Switzerland and the world's largest commodities trading company, with a 2010 global market share of 60% in internationally tradable zinc, 50% in internationally tradable copper, 9% in the internationally tradable grain market and 3% in the internationally tradable oil market

CCW.V
COQUITLAM, BC, Oct. 30, 2020 /CNW/ - Canada Silver Cobalt Works Inc. (TSXV: CCW) (OTCQB: CCWOF) (Frankfurt: 4T9B) (the "Company" or "Canada Silver Cobalt") is pleased to announce that it has entered into an option agreement with MagNor Resources (MagNor) dated October 26, 2020 (the "Agreement") whereby Canada Silver Cobalt may earn an undivided 100% Interest, subject to a 2% NSR, in the MagNor's B2 property in Quebec, Canada. The property has 12 claims totaling 670 hectares (6.7km2). The Agreement is subject to TSX Venture Exchange ("Exchange") acceptance.

Cobalt News:
Cobalt Miners News For The Month Of February 2021

the Democratic Republic of Congo (DRC)

The DRC is the primary supplier of the world’s mined cobalt, while China dominates cobalt refining, with about 60 percent of global capacity; notably it controls about 80 percent of cobalt chemical supply.

China accounts for approximately 79% of the world’s refined cobalt sulfate production

“This presents both political and policy risks to the chemicals and automotive industries, and also comes with ethical concerns related to the use of child labor and unsafe working conditions in many artisanal mines in the Congo,” he explained.

Both the US and EU have placed cobalt on their critical minerals lists and are now looking to the Canadian government and its mining industry to diversify cobalt mine production.

The most important news in the cobalt space during Q3 came once again from Glencore. In August, the diversified miner announced plans to shut down its Mutanda mine in the DRC at the end of the year, saying it is no longer economically viable.

Mutanda is the world’s largest cobalt mine, with cobalt production reaching more than 27,000 metric tons last year. Its output made up a fifth of global cobalt supply at that time.

The last quarter of 2019 kicked off with mining giant Glencore signing a new cobalt supply deal with Chinese battery materials maker GEM (SZSE:002340).

In November of 2019, Glencore decided to shut down Mutanda a month earlier than planned, taking its approximately 20 percent share of global cobalt supply offline.

“The most challenging part of 2019 was losing our cobalt identity and switching for battery metals,” he said to INN. “We were bullish on nickel and that's why we picked up the nickel-copper-platinum-group metals HSP project.”

Go Metals was not the only company to add or change its focus from cobalt to nickel. Conic Metals, formerly Cobalt 27 Capital, has now turned its efforts to its Ramu nickel- cobalt operations.

In 2019, Glencore made news headlines after signing long-term supply deals with SK Innovation (KRX:096770), Umicore (OTC Pink:UMICF,EBR:UMI) and GEM (SZSE:002340).

In a recent call with investors, Glencore mentioned its ongoing contract negotiation with BMW (OTC Pink:BYMOF,ETR:BMW). That reflects the trend of more downstream players in the EV value chain being keen to secure long-term supply of cobalt, a crucial element for EV mass production,

In 2020, another topic that will continue to be part of the conversation in the cobalt space is developing supply chains outside of China.

“Aside from a few new sources of refined cobalt (such as HPAL operations in Indonesia and the First Cobalt (TSXV:FCC,OTCQX:FTSSF) refinery in the US), I don’t expect a major change to the supply landscape for refined cobalt,” he said.

Column: Tesla's reluctant commitment to cobalt a warning to others - Andy Home

https://www.reuters.com/article/us-tesla-cobalt-ahome-idUSKBN23U20Q?taid=5ef225dab353e80001154c29&utm_campaign=trueAnthem%3A+Trending+Content&utm_medium=trueAnthem&utm_source=twitter

The BMW Group has signed a five-year cobalt supply deal with Moroccan mining company Managem Group covering around one-fifth of its needs for its latest electric drive trains, the company said.

This July, BMW has provided more colour to its battery cell sourcing strategy with the announcement of a €100 million, 5-year cobalt supply deal with Morocco’s Managem Group, and a €2 billion supply contract for battery cells from the Swedish battery manufacturer Northvolt.

The German automotive company will source its remaining cobalt needs for the electric drive trains from Australia, it added.

The €100-million ($113-million) contract is for 2020-25 and follows a memorandum of understanding on the direct purchase of cobalt signed between the parties in January 2019.

The deal comes on the heels of a supply contract between Glencore and automaker Tesla and marks a further foray into direct purchasing of raw materials needs by the auto sector.