China Molybdenum Co. is the most recent company to bank on the future of electric cars with its plans to get cobalt assets in the Democratic Republic of Congo.
On Monday, Freeport-McMoRan Inc. accepted to offer its controlling stake in the Tenke Fungurume copper-cobalt mine to CMOC, as the Luoyang, a Chinese company for $2.65 billion. CMOC is also negotiating to buy Freeport’s interests in other cobalt possessions.
The offer marks the Chinese company’s entry into cobalt, among the specialty metals used in rechargeable batteries. The battery market is broadening as more consumers rely on electrical vehicles made by companies such as Tesla Motors Inc. and look to save renewable resource to power devices when there’s little wind or sunshine.
“I live in Phoenix and Tesla is constructing a giga factory just next door in Nevada,” stated Kalidas Madhavpeddi, who heads CMOC International. “Electric automobiles most likely have a development rate of 11 percent plus a year in regards to batteries. The cobalt market has got a really interesting future.”
