Cobalt Price Squeeze Could Derail The EV Boom
....And the alarming news: Prices of cobalt, a key element in EV batteries, have lately been surging as Covid-19 lockdowns in southern Africa have created severe supply chain bottlenecks.
....MUCH MORE
And from Reuters
Albemarle warns lithium sales sliding amidst weak EV market
Albemarle Corp (ALB.N), the world’s largest producer of lithium for electric vehicle batteries, warned on Wednesday that its third quarter sales and profit will dip as automakers produce fewer EVs due to the coronavirus pandemic....MOREHT on the latter story: FT Alphaville's Further Reading post
Because lithium only trades in the cash market* you can't construct a pair trade or dirty hedge but an outright short on the cobalt futures is one way to go:
*The LME has been talking about introducing a lithium contract for the last half-decade but to date, nothing.
