Core Viewpoint - US Critical Metals Corp. (USCM) has retained 100% ownership of the Haynes Cobalt Project in Idaho, which is crucial for addressing the U.S. cobalt supply needs amid significant reliance on imports [1][3]. Industry Context - The U.S. is heavily dependent on external cobalt sources, with over 75% of its supply needs met through imports and recycling, highlighting the importance of domestic production [2][3]. - The U.S. military has initiated a five-year program to acquire approximately 7,480 tonnes of cobalt for strategic defense stockpiles, marking a significant investment of $500 million [2]. Company Strategy - USCM views the Haynes Cobalt Project as a strategic asset that can help meet future supply needs for defense, aerospace, and energy transition industries [3]. - The CEO of USCM emphasized the long-term importance of cobalt to U.S. supply chains and noted increased government support for critical metals, as evidenced by a recent $400 million investment in MP Materials Corp. by the U.S. Department of Defense [4]. Project Details - The Haynes Cobalt Property spans approximately 470 acres and is adjacent to the only primary cobalt mine in the U.S., operated by Jervois Global [5]. - Historical exploration by Noranda Exploration Inc. indicated promising cobalt mineralization, with significant results from past drilling [8][9]. - Recent rock sampling by USCM in 2021 yielded positive results, with cobalt concentrations exceeding 1.0% in some samples [13][14].

China’s Zhejiang Huayou Cobalt expects to report record half-year earnings, as it ramps up nickel projects in Indonesia https://t.co/ElLyNTfXdv ...

Around 40,000 children are estimated to be involved in cobalt mining in the Democratic Republic of Congo. Some are as young as seven.See the relentless search for critical minerals in photos https://t.co/IjO9LGnSDJ ...

Around 40,000 children are estimated to be involved in cobalt mining in the Democratic Republic of Congo. Some are as young as seven.See the relentless search for critical minerals in photos https://t.co/Iw9GXmsCN4 ...

Core Viewpoint - The recent fluctuations in cobalt prices are closely linked to policy adjustments in the Democratic Republic of Congo (DRC), which significantly impact domestic cobalt-related industries and listed companies [3][12]. Group 1: Cobalt Price Trends - As of March 10, the average price of domestic cobalt reached 223,000 yuan per ton, marking a cumulative increase of 40.25% since the low point on February 24 [2]. - The cobalt industry has experienced a continuous decline over the past three years, with prices dropping approximately 80% [9]. - The DRC announced a four-month suspension of cobalt exports on February 24, 2025, to address the oversupply in the global cobalt market, which could lead to a 25% reduction in global cobalt supply [8][13]. Group 2: Impact on Industries - The increase in cobalt prices is expected to raise the cost of ternary power batteries for electric vehicles by approximately 1,000 yuan for every 60% rise in cobalt prices [4]. - The supply-demand gap in the cobalt industry could reach 25%, which is significant enough to drive up commodity prices [7]. - The price of cobalt sulfate, used in ternary materials, surged from 26.55 yuan per kilogram to 42.05 yuan in just ten days, reflecting a 58.4% increase [15]. Group 3: Market Reactions - From February 25 to March 10, the average stock price increase for four listed companies in the cobalt sector reached 21.41%, leading all sub-sectors [21]. - Companies like Luoyang Molybdenum Co., which is the largest cobalt producer globally, reported an 8.6% increase in stock price and are actively communicating with the DRC government regarding policy changes [22]. - The rising cobalt prices have also affected the recycling market for used batteries, with significant price increases reported for scrap batteries [18]. Group 4: Company Performance and Profitability - Companies such as Hanrui Cobalt and Tengyuan Cobalt are expected to benefit from the rising prices, as their profitability is closely tied to the prices of cobalt products [24]. - However, the revenue contribution from cobalt-related businesses is relatively low for many A-share companies, with cobalt products accounting for only 36.08% of Tengyuan Cobalt's revenue [25]. - The varying levels of benefit from the price increases will depend on each company's position in the supply chain and revenue structure [26].