Investing in cobalt stocks

Cobalt is one of the most rare, expensive and sought-after metals on the market. But an investment in cobalt is far from foolproof. Investors in Australia should be wary of the dangerous and violent conditions that contribute to instability in cobalt acquisition before investing in cobalt stocks.

What is cobalt and how is it used?

Cobalt is a hard, metallic element used to manufacture batteries, magnets, paints and chemical catalysts. It’s rare, valuable and in increasingly high demand thanks to the rise of electric vehicles.

Over two-thirds of the world’s cobalt is mined in the Democratic Republic of Congo. Other major cobalt producers include Cuba, Russia, Australia and the Philippines.

Why invest in cobalt stocks?

It’s no secret that the tide of vehicle manufacturing is shifting. Thanks to environmental movements worldwide, electric vehicles have become less of a novelty and more commonplace than ever before.

And what do electric vehicles need to function? Batteries.

Cobalt is an essential part of the electric vehicle manufacturing process, as it’s a key component of lithium-ion batteries. Many industry experts expect the demand for cobalt to rise in the coming years with the projected impact of electric vehicles on the automotive market.

Risks of investing in cobalt stocks

A major risk facing cobalt investors is the location of the majority of the world’s cobalt supply: the Democratic Republic of Congo (DRC). Historically, the DRC has been marked by political instability and civil unrest. Volatile political shifts have the potential to impact supply chains and security for cobalt operators in the DRC is far from guaranteed. The process of cobalt mining is also fraught with conditions that violate human rights.

As a result of the unstable and violent conditions that surround cobalt acquisition, a number of companies that rely on it, including Tesla, are actively seeking a workaround to avoid overreliance on the difficult-to-procure metal. As electric vehicles become more popular, some manufacturers are working to develop methods of electric power that reduce or eliminate the need for cobalt.

That said, such a solution is still many years from mass production. Industry experts suggest electric vehicles will continue to rely on cobalt.

Cobalt stocks

Most of the companies on this list don’t deal exclusively in cobalt — the mining and refining of cobalt is typically conducted in conjunction with another metal. Most cobalt stocks require an international brokerage account to trade, as few of these multinational companies trade on Australian exchanges.

• Australian Mines (AUZ.AU)

  Company summary

  Australian Mines Limited engages in the mining and exploration of mineral properties in Australia. The company primarily explores for cobalt, nickel, and scandium deposits. Its flagship project is the 100% owned Sconi Battery Minerals project located in North Queensland, Australia. The company was incorporated in 1996 and is based in Brisbane, Australia.

  Historical performance

  Stock information

  • Market capitalization: $12586641
  • PEG ratio: 0

• Cobalt Blue (COB.AU)

  Company summary

  Cobalt Blue Holdings Limited engages in the exploration and evaluation of early-stage cobalt resources in Australia. The company primarily explores for cobalt. It holds 100% interest in the Broken Hill Cobalt project comprising five exploration licenses and two mining leases covering an area of approximately 220 square kilometers located in the Broken Hill, New South Wales. The company's projects also include the Kwinana Refinery Project and the Cobalt in Waste Stream Projects. The company was incorporated in 2016 and is based in North Sydney, Australia.

  Historical performance

• Sayona Mining (SYA.AU)

  Company summary

  Sayona Mining Limited, together with its subsidiaries, engages in mineral identification, acquisition, exploration, and development in Australia and Canada. It explores for lithium, graphite, and gold deposits. Its flagship property the North American Lithium project comprises 19 contiguous claims covering an area of 582.31 and one mining lease covering approximately an area of 700 hectares located in Quebec, Canada. The company was formerly known as DiamonEx Limited and changed its name to Sayona Mining Limited in May 2013. Sayona Mining Limited was incorporated in 2000 and is headquartered in Brisbane, Australia.

  Historical performance

• Vulcan Energy Resources (VUL.AU)

  Company summary

  Vulcan Energy Resources Limited engages in the geothermal energy, and lithium exploration and development activities in Europe. It holds interests in the Zero Carbon Lithium project. The company was formerly known as Koppar Resources Limited and changed its name to Vulcan Energy Resources Limited in September 2019. The company was incorporated in 2018 and is based in Perth, Australia.

  Historical performance

• Aeon Metals (AML.AU)

  Company summary

  Aeon Metals Limited, together with its subsidiaries, engages in the exploration for and evaluation of mineral properties in Australia. The company explores for copper, cobalt, gold, lead, zinc, molybdenum, silver, nickel, and base metal deposits. Its flagship project is the Walford Creek Copper-Cobalt project located northwest of Mount Isa in Northwest Queensland. The company was formerly known as Aussie Q Resources Limited and changed its name to Aeon Metals Limited in August 2012. Aeon Metals Limited was incorporated in 2006 and is based in Sydney, Australia.

  Historical performance

Compare domestic trading platforms

Some cobalt stocks, like New World Resources and Cobalt Blue Holdings, are available on the ASX. That means you can easily purchase them with any brokerage account in Australia. The table below compares some of the most popular Australian brokers.

But if you plan to heavily trade cobalt, you’ll want to compare international brokerage accounts that offer access to foreign exchanges.

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Updated regularly

Name	Product	Price per trade	Inactivity fee	Asset class	International
eToro Finder AwardExclusive		$0	US$10 per month if there’s been no log-in for 12 months	ASX shares, Global shares, US shares, ETFs	Yes	Finder exclusive: Get 12 months of investment tracking app Delta PRO for free when you fund your eToro account (T&Cs apply). CFD service. Capital at risk. Join the world's biggest social trading network when you trade stocks, commodities and currencies from the one account.	Go to siteMore Info Compare	loading Fetching your data...
CMC Invest Finder Award		$0	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	$0 brokerage on US, UK, Canadian and Japanese markets (FX spreads apply). Trade over 45,000 shares and ETFs from Australia and 15 major global markets. Plus, buy Aussie shares or ETFs for $0 brokerage up to $1,000 (First buy order of each security, each day - excludes margin loan settled trades).	Go to siteMore Info Compare	loading Fetching your data...
Moomoo Share Trading		US$0.99	$0	ASX shares, Global shares, US shares, ETFs	Yes	Get 10 free shares + earn 6.8% p.a. on idle cash upon deposit. T&Cs apply. Trade shares on the ASX, the US markets and buy ETFs with Moomoo. Plus join a community over 20 million investors.	Go to siteMore Info Compare	loading Fetching your data...
Tiger Brokers Exclusive		US$2	$0	ASX shares, Global shares, US shares, ETFs	Yes	Finder exclusive: 10 no-brokerage US or ASX market trades in the first 180 days + 7% p.a. on uninvested cash with first deposit of any amount, plus US$30 TSLA + US$30 NVDA shares with deposits up to AU$2000. T&Cs apply. Trade Australian, US and Asian stocks with no minimum deposit on Tiger Broker’s feature-packed platform.	Go to siteMore Info Compare	loading Fetching your data...
Webull		US$0.25	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Get advanced research and trading tools with $0 brokerage and free lvl 2 NASDAQ stock data for 30 days. T&Cs apply. Trade ASX and US stocks and US options, plus gain access to inbuilt news platforms and educational resources. You can also start trading for less with fractional shares.	Go to siteMore Info Compare	loading Fetching your data...

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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Bottom line

Cobalt plays an important role in our modern society, contributing to the production of batteries, magnets and chemical catalysts. While its primary production lines in the DRC are far from stable, experts believe we will continue to need cobalt to produce electric vehicles in the coming years.

To invest in cobalt, you’ll likely need an international brokerage account. Compare your platform options to find the brokerage that best fits your needs.

Frequently asked questions

• Do all batteries contain cobalt?

  Most rechargeable lithium-ion batteries contain cobalt. This includes batteries for smartphones, tablets, laptops and electric vehicles.

• How much does cobalt cost?

  Over the past 10 years, the spot price for one pound of cobalt has fluctuated between $12 and $40.

Written by

Shannon Terrell

Writer

Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies. See full bio