Celsius Resources (ASX:CLA) is an ASX listed resources company aiming to leverage off the coming boom in battery technology. Celsius is currently focused on cobalt projects and is looking to strategically add projects with the potential to contribute metals and materials into the construction and usage of batteries.
Currently around 40% of all cobalt produced is used to make rechargeable batteries. This number is expected to increase to 55% within two years. Cobalt is an essential element in lithium-ion batteries and is a vital material in the rapidly expanding rechargeable battery and Electric Vehicle markets.
Demand for cobalt-containing batteries is expected to rise rapidly in coming years as sales of plug in hybrid and fully electric vehicles increases. EV sales rose to around 774,000 vehicles globally in 2016, with this number expected to hit 1.1 million sales by the end of 2017.
By agreeing to acquire 100% of Opuwo Cobalt Pty Ltd, Celsius Resources holds an option to acquire the Opuwo Cobalt Project based in Namibia.
Drilling is to commence in early March, putting Celsius Resources on track with its goal to meet future cobalt demand.
After seven years of oversupply and overcapacity, cobalt prices are expected to rise in 2017 as global demand for refined cobalt exceeds the 100,000 tonne mark and supply tightens.
Celsius Resources believes it is an ideal time to be exploring for cobalt in a highly prospective area, just as market factors begin to work in its favour.