SMM1, March 8: Canada's cobalt 27 uses the lithium industry to mine its Marion Mountain lithium project in western Australia by acquiring 1.5 per cent of its royalties and $2 a tonne of ore. The latest in a series of big deals the company announced in less than a year.
Just a few days ago, the Toronto-based company disclosed a plan to buy Haitian Pacific company (Highlands Pacific) for $96 million. Haiti Pacific holds a stake in a nickel-cobalt mine in Papua New Guinea.
Cobalt 27 will invest about $9 million in the partial production of spodumene, a major lithium battery project in the mineral resources company and Jiangxi Ganfeng lithium industry. So far, the company has been buying only nickel and cobalt, betting that growth in (EV) sales of electric vehicles will significantly boost demand for both elements.
"We are committed to becoming an agent for the massive transformation to battery-powered electric vehicles and energy storage systems," Anthony Milewski, chairman and chief executive of the company, said in a statement. " The deal's diversified portfolio of battery metal lithium is at the heart of our business.
Experts predict that demand for lithium by battery makers alone will grow by 650 per cent by 2027, while overall demand is expected to more than triple over the next nine years.
However, as the number of projects expected to go online is expected to continue to increase, prices are expected to fall by the early 1920s.
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