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An ETF is an Exchange Traded Fund that tracks an underlying index or asset. The best cobalt ETF is the Global X Lithium & Battery Tech ETF (LIT). It invests in companies involved in the entire lithium cycle, including mining, refining, and battery production, with cobalt being a key component in many batteries.
Glencore stock ADRs also currently qualify for our stocks under $10 per share category and could be a good fit for your portfolio if you’re looking to invest in a cobalt miner. For ideas on cobalt stocks to invest in, check out our list of the biggest producers of the metal — these are some of the largest names in the sector. You can also read our overview of Canadian cobalt companies that have seen year-to-date gains, and our list of the biggest cobalt stocks on the ASX by market cap.
Because of this, you might want to consider investing in cobalt now. Amplify’s offering has a diverse list of stocks involved in the development and manufacturing of lithium-ion battery technology. It also holds metal mining and production stocks that provide the raw materials used in making batteries. As of mid-2024, cobalt stocks comprised 2% of the fund’s investments. It also counted notable cobalt producer BHP Group among its top five holdings.
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Wheaton Precious Metals (NYSE:WPM)
Because of its low concentrations in the earth’s crust (0.002%), it isn’t found as a native metal. Instead, cobalt is often produced as a by-product of copper and nickel-mining activities. More than half of the world’s supply of cobalt originates in the Democratic Republic of Congo (DRC). Other major cobalt producers include Russia, how to buy leash coin Canada, Australia, the Philippines and Cuba.
Cobalt Blue Holdings
Wheaton has a market cap of around $18 billion, with $1 billion in revenue in December 2020. Because of these sentiments, several companies that rely on cobalt, including Tesla, are actively seeking ways to avoid dependence on the metal. As electric vehicles rise in demand, several manufacturers are already developing new electric power methods that either eliminate or reduce the need for cobalt. This ETF consists of more than 250 mining stocks, including prominent companies like Glencore and BHP Group, which obtains cobalt from its copper- and nickel-refining processes. While China produces only a fraction of global cobalt supplies, the country is responsible for refining more than half of the world’s cobalt. China also dominates the use of cobalt due to its status as the world’s largest manufacturer of electronics.
- The boom in electric vehicles is just beginning, and it’s unlikely that the demand for cobalt will wane in the following years.
- The first option is cobalt futures which can found on the London Metal Exchange.
- The ProShares S&P Global Core Battery Metals ETF is a relatively new fund that started trading in late 2022.
- Although it’s not a pure play on cobalt, this ETF is lower risk because it offers broader exposure to the entire materials sector.
The many risks in the upstream supply chain
If you are curious about how to invest in cobalt ETFs, follow our step-by-step guide for a quick and straightforward guide. Cobalt also plays a role in the superalloys used to manufacture turbine engines, as well as in the treatment of cancer with radiation from cobalt-60 and in medical equipment sterilization. Cobalt is also used in dental, orthopaedic and prosthetic medical implants. Other applications for cobalt include the manufacture of tooling materials, catalysts, pigments and permanent magnets. Your investment style can dictate which kind of fund is best for your portfolio.
iShares MSCI Global Metals & Mining Producers ETF (PICK)
Cobalt is a critical element in the production of lithium-ion batteries, which are used in a wide range of applications, including electric vehicles and mobile devices. Investing in cobalt stocks has recently become popular among hedge funds due to the numerous industrial applications of this transition metal. The main drivers for the cobalt mining industry continue to be the metal’s use in lithium ion batteries for the growing EV market. background bitcoin miner software double bitcoin in 1 hour Is the world’s largest producer of iron ore, pellets and nickel.
Based in Brazil, it is one of Latin America’s largest companies. It is the world’s top producer of what exchange is commercium cryptocurrency on iron and nickel, as well as a top producer of other metals used in battery manufacturing, such as manganese and copper. Still, cobalt is used in most EV batteries and has a wide range of applications. Investing in cobalt stocks is worth considering if you believe its widespread use in battery technology and renewable energy will continue. If you’re an investor looking for a quick profit, the best strategy involves buying cobalt investment stocks at low prices and selling them when the price rises. If you’re looking to invest in cobalt for the long run, you may be better off investing in ETFs.