October 23, 2009
Growth in electric vehicle sector to boost demand for cobalt and neodymium
Publisher: Metal-Pages.com
WASHINGTON D.C. (Metal-Pages) 23-Oct-09. Demand for cobalt andneodymium is set to surge as automakers are expected to ramp upproduction of electric and hybrid vehicles, according to Dr IrvingMintzer, principal at Meg LLC.

Based on a high demand scenario for vehicles powered by electric drivechains, Mintzer forecasted that additional demand for cobalt coulddouble from current levels to 120,000 tonnes a year worldwide and48,000 tonnes a year for neodymium by 2030.

The rise in demand for cobalt will be twice the current overall rate ofglobal production, he told the Managing Supply Chain Risks for Criticaland Strategic Metals conference in Washington D.C.

In the U.S. alone, Minzter forecasted that demand for cobalt could riseby an additional 25,000 tonnes a year and 10,000 tonnes for neodymiumif demand for electric vehicles gathers pace in line with someanalysts' projections.

"Where in the world is the production going to increase rapidly enough to meet the additional levels in annual demand?" he said.

"As we promote these technologies we need to think a little bit furtherahead and look at what it means to lower dependence on imported oilfrom countries maybe considered unstable or unfriendly and increase ourdemand for these essential components."

Under a low demand scenario for vehicles containing cobalt andneodymium components, Mintzer forecasted additional demand for cobaltto hit 12,000 tonnes a year and 24,000 tonnes a year for neodymium by2030.

The forecast comes as automakers produce more electric vehicles usingmaterials such as samarium-cobalt and neodymium magnets for electricmotors in hybrid cars such as the Toyota Prius, Honda Insight and FordFoucs.

Concerns over the dependence on foreign oil and environmental issuesare expected to boost sales of hybrid and electric vehicles.

With the U.S. government also now pledging funds to spur investment incleaner and more efficient vehicles, cars containing electric drivechains could account for about one third of the U.S market by 2030,according to Mintzer.

He also suggested that about one third of the 72 million vehicles sold worldwide could contain electric drive chains.

Other industry participants believe the market penetration of electricand hybrid vehicles may be lower than some forecasts as the technologyis slow to develop.

Lux Resources has forecasted that electric and hybrid cars will onlyaccount for about 6 million vehicles of the total auto market by 2020.