Ford Knows... And Is Helpless
Ford is barreling toward a crisis.
We’re not even a full month into the year, and its CEO came out and lamented that 2018 would be a bad year due to more expensive raw materials.
We know full well what he was doing: tempering expectations ahead of the company’s next earnings release.
Last year, Ford had to shell out an additional $2 billion thanks to exchange rates and higher steel and aluminum expenses.
This year, it’ll cost an extra $1.6 billion.
Yet it’s not steel or aluminum that Ford should be panicking over.
You see, Ford jumped feet-first into the EV revolution after announcing that it would have 40 all-electric and hybrid models available with the next four years.
Ford even created a new crack squad of experts to develop these EVs, calling it “Team Edison.”
And the company is throwing $11 billion toward bringing this dream into fruition.
But unless it starts making moves very soon, Ford will be blindsided... along with every other major automaker with dreams of an all-electric fleet.
Ford Is Helplessly Trapped
If you think Ford and friends are feeling the sting of higher costs for basic materials like aluminum and steel, just wait for the fear that’ll flood their boardrooms once they’re gouged over another, far more important commodity.
You’ve heard me call it by several names before: goblin metal, Musk’s blood metal, and “blue gold.”
No matter which term you’re familiar with, it’s become one of the most highly sought-after materials on the planet.
Let me be absolutely clear here: Anyone who plans on using a lithium-ion battery will soon be in full crisis mode.
And there’s one phrase that should be ingrained in the minds of every investor right now: ethical cobalt.
Learn it at all costs, because that single phrase will make you rich.
You see, the lack of ethical cobalt supply today is an absolute nightmare for ANY company that plans on selling an electric vehicle in the future.
That means Ford.
It means Chevy, Mercedes-Benz, GM, and Volvo.
And yes, it also means Tesla.
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It’s imperative that you recognize the situation at hand.
In this case, it’s that 60% of the world’s current cobalt supply comes directly from the Democratic Republic of the Congo.
You may have seen the topic of ethical cobalt pop up here and there in headlines.
The Wall Street Journal recently covered it, including the horrific mining conditions that are prevalent in the DRC.
As more and more companies like Ford go all in on the transition to electric vehicles, this is going to become a public relations nightmare for anyone who can be connected to those artisanal mines.
Trust me, you won’t find the public very forgiving when it comes to 40,000 children working endless hours to supply Tesla with its vital supply of cobalt.
Fortunately, Musk has a better option...
The $2 Must-Own Mining Stock in 2018
Look, this shouldn’t be new to you.
In fact, I alerted my readers last October that a tiny $1 cobalt stock was in a perfect position to help solve Tesla’s cobalt crisis.
Shares doubled within two months as it became apparent that cobalt demand was set to surge again.
Now, the market is gearing up for an even more bullish run!
But today, we’re not the only ones who see a bright future here...
S&P Global Platts is calling for another major price jump for cobalt, projecting that it could reach as high as $40.59 per pound by next year.
And my "blue gold" stock is about to deliver again for shareholders.
You see, these guys control the only advanced-stage cobalt project in the United States right now.
More important, they will soon be able to offer something that nobody else can: a local source of ethical cobalt for Elon Musk.
Remember, Tesla said outright that it intends to source ALL of its materials from North America.
This is its chance.
Until next time,
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.
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