Hi All This is an extract of something I posted back in early...

Hi All

 

This is an extract of something I posted back in early February on another company thread.  

 

Below are some very impressive statistics on the increasing demand for Nickel, Cobalt and Lithium.  It was presented to the US Senate Committee on 5 February 2019 by an industry credible resource called Simon Moores from Benchmark Minerals Intelligence. 

 

The statistics will in my opinion jolt the US into action especially given the current Trade Wars and Trump’s push to bring manufacturing back “inhouse”.  I suspect the focus will soon be on more US owned battery megafactories within the US rather than just Tesla and more sourcing of the high quality sulphide class 1 Ni and Co from the likes of Australia and other stable non DRC sources to derisk supply. 

Extract:

Simon Moores, managing director, Benchmark Mineral Intelligence, testified before the U.S. Senate Committee on Energy and Natural Resources on Tuesday. Moores was summoned by the Senate Committee to testify on the lithium, cobalt, nickel and graphite supply chains for energy storage. 

 

"Benchmark Mineral Intelligence is now tracking 70 lithium ion battery megafactories under construction across four continents, 46 of which are based in China with only five currently planned for the US. When I gave my last testimony in October 2017, the global total was at 17," Moores said. 

 

Moores said that these megafactories are being built almost exclusively to make lithium ion battery cells using two chemistries: nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminium (NCA). “This means the supply of lithium, cobalt, nickel and manganese to produce the cathode for these cells, alongside graphite to produce battery anodes, needs to rapidly evolve for the 21st century," Moores testified. 

 

Moores presented a chart based on the assumption that all of these megafactories are built and run at 100% capacity utilization. "Under this scenario, lithium demand will increase by over eight times, graphite anode by over seven times, nickel by a massive 19 times, and cobalt demand will rise four-fold, which takes into account the industry trend of reducing cobalt usage in a battery," Moores testified.Further evidence on what is happening in the world of Nickel.

 

Full article and testimony here:

 

http://www.mining.com/battery-megafactories-buildout-nickel-demand-19-fold-benchmark/

Hope this help everyone understand why resources like CLA's will deliver substantial shareholder value in the next 1.5 to 5 years and beyond.

People need to do their research and stop following the panic merchants or those with other agendas.

IMO once the cobalt price picks up so will CLA.  This turn a round will not be too far away.

 

Cheers SandyC