Electric car boom spurs investor scramble for cobalt

London

INVESTORS are buying up physical cobalt anticipating that shortages of the metal, a key component of lithium-ion batteries used in electrical cars, will spur prices to their highest levels since the 2008 financial crisis.

Prices for cobalt metal have climbed nearly 50 per cent since September to five-year peaks around US$19 a pound as stricter emissions controls boost demand for electric vehicles, especially in China, struggling with ruinous pollution levels in some cities.