APPLE, TESLA, FORD MOTORS AND VOLKSWAGEN ARE ALL IN A MAD SCRAMBLE FOR ONE STRATEGIC MINERAL!

Wealth Research Group sees cobalt as the most essential element for the electric vehicles industry.

The big story here is the fact that Congo controls 60% of global mine supply, but 40,000 children are working there in slave labor conditions. Human rights groups are making it increasingly difficult for Apple, Tesla, Samsung, Microsoft, and other major companies, which rely on cobalt for their products, such as Smartphones and electric vehicles, to buy it from Chinese refiners, without accounting for its origin.

Here’s the thing – for many decades, cobalt was considered an impurity. Like many other minerals, there was no use for it.

NO ONE mined cobalt. It was, in essence, a by-product of nickel and copper mining, and this still holds true today.

This is a classic bottleneck situation forming. Think of it this way – Apple has gone out of its way, approaching miners directly, to secure supply. No one has ever done this.

The way that these large manufacturers usually buy materials is through their suppliers, which buy them for the refiners, which buy them from the dealers, which buy them directly from the miners – it’s a complicated ecosystem that Apple is looking to disrupt!

Technology has led us to a point, where we are now using more elements in various combinations than ever before.

Our team spoke with European-based scientists, who are attempting to find alternatives for cobalt, since its price keeps rising, but they indicated that “it will take decades. It’s simply not easy to replace it. Cobalt does the job better than anything else. It’s as if it was designed by nature to be placed into a General Motors SUV.”

As you can see, we’ve reached the point of an official deficit in the market, which is in a trajectory to intensify by 2023.

Cobalt helps the cathodes concentrate a lot of power in a confined space. Without the element's energy density, batteries in EVs perform worse.

The United Kingdom and France have already announced plans to phase out gasoline and diesel-powered vehicles by 2040. Germany — home of Mercedes-Benz, BMW, and Audi — passed a resolution to ban the sale of new gasoline and diesel vehicles by 2030.

China announced the country's intention to ban the sales of cars using fossil fuels altogether.

GM said it would add two more all-electric cars to its fleet later this year and at least 18 more by 2023. They’re not just spraying around slogans – this is a strategy coming straight from the top: 'General Motors believes the future is all-electric.' –Mark Reuss, the company's head of product development.

Volvo executives have vowed that by 2019 all its models will be either hybrid or powered solely by batteries.

What we've identified is a company focused on a new frontier – Chile.

While the Democratic Republic of Congo is probably going to consider tax exports soon or even worse, treat the metal as a national priority and ban commercial companies from mining altogether, basically nationalizing the industry, the rest of the world needs to play catch-up, effective immediately.

Chile is the world’s most important region for Lithium mining, but it has been completely ignored by the cobalt companies, as you can see. It’s not even a part of the top ten countries, currently.

It’s not only the capital of lithium mining, but also the Holy Grail for copper miners, with six out of the top ten biggest mines in the world, located there.

New Energy Metals (TSX-V: ENRG & US: DRRVF) is breaking ground here!

The market cap today is a mere CAD$25M, but if exploration results prove that Chile's historically important cobalt producing region can be reactivated, then this opens the door for the company to become Chile’s cobalt dominator.

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Royal Dutch Shell has just announced a partnership with the leading automotive companies to install super-fast chargers on European highways.

It’s game-on for electric vehicles. Yet, when it comes to the logistics of scaling this industry to the levels it would be ten years from now, 16-times its size today, we need cobalt that doesn’t come from areas where 5-yr old children toil in the scorching heat for $2-$3 a day.

You see, the truth is that Congo will remain the dominant player for years to come, but the race is on to find the next big region for cobalt mining. Remember, only 2% of today’s cobalt supply is mined directly. It is solely dependent on copper and nickel mines, which makes it even more vulnerable.

This is the mother lode.

Wood Mackenzie, consultant, forecasts growth to 98Kt annually by 2022. On top of that, Caspar Rawles, a market analyst at Benchmark Minerals Intelligence, stated that cobalt demand would more than double to 127Kt annually by 2025.

This would mean that the cobalt demand from batteries alone would exceed current production.

Q2’s Strongest Recommendation: Consider Shares of New Energy Metals (TSX-V: ENRG & US: DRRVF) NOW!

Here’s what we know – cobalt is the fastest-growing mining sector, and this isn’t about to change.

  1. The Democratic Republic is one of the most impoverished countries. It went through two civil wars in its recent past and is considered highly unstable.

Many companies consider the high likelihood of nationalizing the cobalt industry or of a regime policy change.

  1. Chile is the world’s mining leader of lithium and one of the powerhouses of copper mining.

New Energy Metals (TSX-V: ENRG & US: DRRVF) is looking to advance both a copper project and many cobalt projects in Chile.

  1. The company has just started trading, so its immediate catalysts include investors becoming aware of this game-changing cobalt strategy and the possibility of drilling results, confirming the company is sitting on an economic deposit.

This will allow them to raise money and advance their plans to become a Chilean cobalt dominator.

Wealth Research Group sees the electric vehicles industry as a significant source of wealth generation in the coming decade.

Any way you look at it – cobalt is the key component, and there are no replacements.

Either the price goes higher, or a mining game-changer needs to occur. My bet is on New Energy Metals, and I wouldn’t be surprised if the big boys, like Glencore, the world’s biggest cobalt miner, are looking to see what the coming drilling season brings for the company.

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