How to Profit From Cobalt Stocks as More People Adopt Electric Cars

Did you hear what Elon Musk did? 

No, not the thing about possibly buying Twitter. It does involve that platform, though. 

Earlier this month, the world’s richest man tweeted: 

“Price of lithium has gone to insane levels! Tesla might actually have to get into the mining & refining directly at scale, unless costs improve.”

And he’s right. 

Since the start of the year, the price of lithium has exploded. It and other metals like it are enjoying a price surge at a time when stocks are hurting and inflation is eating away at consumers’ buying power. 

A lot of this is coming from increased sales of electric vehicles. More models are available than ever before and gas prices have only gone up thanks to rampant money printing and Putin’s war, so the thinking is that consumers are adopting EVs faster than maybe they would have otherwise. 

Certainly, the trend is shifting in favor of electric cars becoming the norm. 

Just yesterday, I spent the day in New York City at the International Auto Show and just about every manufacturer in the building had at least one EV model to show off. The last time I went, in 2019, that was hardly the case. 

But while lithium is enjoying extra attention and increased value from more EV sales, it’s not the only metal. 

Cobalt stocks are also seeing their value climb at a time when everything else is declining. 

Like lithium, cobalt is a core component in electric vehicle batteries. 

Also, like lithium, and everything else, cobalt is affected by the current supply chain constraints.

All of these catalysts have been working together to see the value of the metal rise. When you combine that with the fact that investors have been putting their money in cobalt stocks to weather the storm markets are going through now, it makes sense that this will be one of the hottest sectors for the foreseeable future. 

This is an investment play that’s unlikely to cool off. 

As we’ve been saying in these pages, nations all over the world are working to get citizens out of fossil fuel cars and into EVs. They’re doing this by investing in charging infrastructure. They’re doing this by offering incentives and tax credits. They’re doing this by writing into law the banning of sales of combustion engine vehicles within the next 10-15 years. 

So, before long, more people will be behind the wheel of an EV than the fossil fuel cars we’ve been using for the past 100 years. 

That means more cobalt is going to be needed, and it means cobalt stocks are going to be even more valuable to the investors who put their money in them. 

So in this market environment where uncertainty rules, commodities like cobalt are poised to be as close to a sure thing as you’ll find. 

Putting your money into the right play means that you’ll be able to thrive in a market where very few investors are doing that. 

And there are plays out there that can return the kinds of profits most only dream about. 

These commodities are only going to keep going up in value as more people adopt electric cars. 

Learn all the details and see exactly where you should put your money.

Ryan Stancil

Ryan Stancil
Editor, Daily Profit Cycle