The stock of Tesla Inc (NASDAQ:TSLA) closed at $343.45 gaining 1.65% in yesterday’s trading session. Glencore has made its prediction regarding the rise in demand for the electric vehicles citing that it will over the next 13 years quadruple the global cobalt demand.
A number of market analysts have established that demand will over the next five years exceed supply by a significant margin despite the highly optimistic cobalt production assumptions. It is at the moment projected that it takes approximately 30 years to convert exploration success into a new mine.
The relevant scale solutions must be implemented much quicker to ensure that the cobalt cliff doesn’t turn out to be an existential threat to the EV revolution and Tesla. The Hail Mary’s effort to extract the cobalt rich manganese nodules from the ocean floor in areas surrounding the Cook Islands is one of the very few projects ever witnessed that approached the relevant scale.
The battery industry has in the course of time been associated with an ever evolving supply chain dynamic which fundamentally is a great representation of the existential threat to Tesla together with its lofty ambitions for an EV revolution.
A market expert in a recent interview said that it was crucial to come up with relevant scale solutions which can be implemented within the shortest time frame. Failure to do this will then imply that the cobalt cliff will stick out as an existential threat to the EV revolution as well as to Tesla.
The company’s spokesperson opined, “Since the Glencore slide focuses on incremental demand for copper, nickel and cobalt from the EV industry, it’s important to remember that while the EV industry will be an important driver of cobalt demand over the next 13 years, it also will be the most price sensitive cobalt user .”
He proceeded to outline that its access to cobalt supplies might end up limited to a number of metals that quite a large number of users do not need. A lot of eyes are watching the company to see how it moves about matters in the long run and what it achieves as well.