How to Invest in Battery Metals Updated 2024 INN

What’s more, about 60 percent of output is a by-product of copper. This has led to supply chain concerns as battery manufacturers look to secure materials as they build out their production capacity. Manganese contributes to certain lithium-ion battery chemistries, such as NCM, lithium-manganese oxide (LMO), high-purity manganese sulfate (HPMSM) and lithium-manganese-iron phosphate (LMFP).

BHP Group

One of our selections, Vale S.A., has its American Depository Receipts (ADRs) listed on the New York Stock Exchange (NYSE), so any major stock broker that fills orders on the NYSE can execute your order. Because most of our picks trade in the over-the-counter (OTC) market, however, you should check with brokers you wish to use to find out if they can execute client orders in that market. It consistently generates some of the best operating profit margins in the mining industry.

Glencore

Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. An exchange-traded fund (ETF) is similar to a share broker because it allows you to gain exposure to a particular market without having to actually buy the underlying assets. With those factors in mind, here’s a look at the five top cobalt-mining companies, as per information provided by S&P Global Market Intelligence. This data does not yet consider year-end reporting by the public companies.

Cobalt, which is mostly mined as a copper and nickel by-product, also plays an important role in lithium-ion batteries. In addition to batteries, this hard, silver-gray metal is used in alloys for jet engines and turbines, along with magnetic steels. With lagging EV demand creating a lower price environment for lithium, experts are expecting to see increased M&A activity in the sector how to buy renq crypto given the strength of the battery metal’s long-term outlook. Trading cobalt physically might not be the best option for most as it entails numerous issues with effort, transport, and security.

However, like any other commodity, cobalt prices can be highly volatile. Additionally, since cobalt is a byproduct, there aren’t really any pure-play cobalt stocks within the metal mining industry. Glencore is the world’s largest cobalt-producing mining company by a long shot, achieving estimated total production of 25,320 metric tons (MT) in 2021.

1. It offers broad exposure to the material sector (including cobalt) for a very low ETF expense ratio of 0.1%.
2. These technologies are central to emerging green technology such as electric cars and wind farms, increasing the demand for this metal.
3. While cobalt is not a conflict mineral, some human rights groups are pushing for it to receive that designation.
4. More than half of the world’s supply of cobalt originates in the Democratic Republic of Congo (DRC).
5. In 2023, the DRC produced 170,000 metric tons (MT) of cobalt, with Indonesia following at a very distant second with 17,000 MT; Russia and Australia took the third and fourth spots, respectively.

How to Invest in Cobalt ETFs Step-by-Step

Cobalt is increasingly used in cutting-edge technologies that can show impressive future growth. This trend suggests that investing in cobalt stocks from large mine operators to companies in the mine development stage could produce considerable returns over time for a patient investor. Glencore is the world’s largest cobalt producer with mines in the DRC, Australia and Canada.

Additionally, Glencore has not generated the same lofty profit margins as peers such as BHP and Vale over the past decade. Funds may directly invest in mining, such as the Vanguard Materials ETF. They may also invest in technology companies that rely on cobalt, particularly those oriented around batteries and next-generation energy. Cobalt is essential for many commercial, industrial, and military applications. Essentially, ETFs allow investors to gain exposure to a certain asset class without needing to purchase individual securities, and there are a number of ETFs based around investing in cobalt.

You can also read our overview of Canadian cobalt companies that have seen year-to-date gains, and our list of introduction to node js the biggest cobalt stocks on the ASX by market cap. If battery technology continues to advance and demand for electric cars and renewable energy projects increases, producers of the element could have a lot to gain in the decade ahead. Freeport-McMoRan is another global mining and energy company and is based in Arizona. Freeport-McMoRan is one of the largest producers of copper, used throughout the global economy. As a copper miner, cobalt is part of the company’s portfolio of assets. It is the world’s top producer of iron and nickel, as well as a top producer of other metals used in battery manufacturing such as manganese and copper.

While Wheaton has deals with mines around the the 100 most influential blockchain people week 18 leaderboard world to store metals, Carpenter helps distribute metals and Vale mines them. However, a big demand driver in recent years has been its use in electric vehicles (EVs). The leading use of cobalt is in electrodes for rechargeable lithium-ion batteries. As more automakers electrify their vehicles, the demand for cobalt should rise. Unfortunately, sourcing supply cobalt is tricky due to the fact that over half of the world’s production comes from the volatile Democratic Republic of Congo (DRC).

Consider investing in more ETFs

Top copper producer BHP Group (BHP 1.66%), which obtains cobalt from its nickel- and copper-refining activity, was by far the top holding as of early 2023 at 13.8% of the fund. It’s most heavily weighted towards specialty chemicals (25.7% of the fund’s holdings) and industrial gases (20.3%). However, it offers exposure to copper producers (5%), which also tend to produce cobalt. The Vanguard Materials ETF is a large fund focusing on companies that produce base materials and metals.

Top 10 Copper-producing Companies (Updated

Most notably, it’s used to create the lithium-ion batteries in your phone, laptop and electric vehicle. As with any commodity, this creates an opportunity for investors. However, significant ethical questions surround the production of cobalt, including the use of child labor to mine it. 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. For ideas on cobalt stocks to invest in, check out our list of the biggest producers of the metal — these are some of the largest names in the sector.

Near-term growth in output is expected from the company’s operations in the DRC; this includes increased cobalt production at the Mutanda mine restart and at Katanga. Melissa Pistilli has been reporting on the markets and educating investors since 2006. She has covered a wide variety of industries in the investment space including mining, cannabis, tech and pharmaceuticals. She helps to educate investors about opportunities in a variety of growth markets. Melissa holds a bachelor’s degree in English education as well as a master’s degree in the teaching of writing, both from Humboldt State University, California. It is a top user of cobalt as well, and China Molybdenum is a top producer of the element.