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Musk's 33-Pound Blood Metal Curse

Written by Keith Kohl
Posted October 27, 2017

I don’t make it a habit to argue with my readers.

Unfortunately, sometimes it’s unavoidable.

This morning was one of those times, and it all started with a simple message sent via Twitter.

“Musk is such a great guy, just look at the good he’s doing; the guy can do no wrong,” he told me.

At first, I’ll admit it was hard to disagree with that sentiment.

After all, it was only a few days ago that we learned about Tesla’s efforts to restore electricity to a children’s hospital in Puerto Rico.

The company managed to restore power to the hospital after allocating part of its battery production toward helping Puerto Rico and other storm-devastated areas; that’s one helluva donation.

Personally, I don’t mind if a few Model 3s are delayed in order for these projects to take priority.

This news is the kind of feel-good story that makes you smile.

“Look,” I tried to explain, “this is a wonderful story, nobody is denying that. I hope I read similar ones every day… but it’s what you don’t know about Musk that will turn your head.”

Let me explain...

Musk’s 33-Pound Blood Metal Curse

It goes by a lot of names: Blue Gold, Goblin Metal, Tesla’s Silver Steed.

You know it as cobalt.

And it’s Musk’s 33-pound curse.

That’s how much cobalt it takes to make an electric vehicle.

Tesla wants to produce 500,000 EVs next year and every year going forward.

Elon Musk isn’t alone, either. We talked about the world’s rapid adoption of EVs by the world’s largest automakers last week.

What Musk has effectively done is spark a lithium-ion battery race across the globe.

And it’s winner-take-all…

In order to get ahead of the competition, companies like Tesla and Volkswagen are among dozens of automakers scrambling to secure their own supply of cobalt — each trying to ink long-term supply contracts before the price of cobalt surges again.

Well, I have some bad news for them...

coblatpriceeac

Above, you can see the price movement of cobalt over the last 12 months.

There’s one serious problem, however.

You see, there’s a public relations nightmare looming for Tesla that won’t be overlooked by its extremely charitable deeds in Puerto Rico.

And it has Musk scared to death that the news will go viral...

While Tesla is doing amazing work setting up reliable electrical power in Puerto Rico, an estimated 40,000 children are mining his blood metal in the Democratic Republic of the Congo (DRC).

I know it isn’t easy to look at a photo like this:

childlabor2

Or this:

chlidlabor1

But it’s important you look... then look again.

This is the dirty secret behind the EV revolution, and it’s one that will only get worse over the next few years.

I can’t help but wonder what Musk would do if he saw this video of children working in Congolese cobalt mines.

Maybe he has.

But it’s more than just a Tesla problem.

Anyone with a product that uses lithium-ion batteries is in the same boat.

By 2025, cobalt demand is projected to explode to 50,000 tons per year.

Within a few years, the DRC’s share of the world’s cobalt supply is expected to increase to 75%.

And Musk knows it, which is why he’s seeking redemption... now.

This horrid situation that plagues the world’s cobalt supply is what prompted Tesla to announce that it would source all of its materials from North America.

That, dear reader, is where we come in.

You see, I’ve uncovered a tiny $1 cobalt stock that controls an advanced-stage cobalt project right here in the United States. Once operational, this project will give Musk — or his competitors, at the right price — ethically sound, battery-grade cobalt salts.

Right now, investors are beating Musk to the punch.

I strongly urge you to take just a few minutes out of your day and do the same.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basic@KeithKohl1 on Twitter

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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