TORONTO, Sept. 22, 2020 /CNW/ - First Cobalt Corp.
(TSXV: FCC) (OTCQX: FTSSF) (the "Company") President & CEO
Trent Mell released the following
statement in response to Tesla Battery Day announcements:
On Tesla's Plans to Make its Own Batteries
If you don't control your
battery technology and raw materials supply chain, you will get
left behind. Simply put, the supply of EVs will grow too quickly
for mines, refiners and cell manufacturers to keep up and there
will be casualties as established automotive companies move towards
an electric future.
The limiting factor for growth
of the EV market is cell production, from the mine to cell
manufacturing. Tesla's strategic decision to vertically integrate
into battery manufacturing is a harbinger of things to come and a
warning to other EV manufacturers on the strategic importance of
controlling supply chains.
On Removing Cobalt from Batteries
Tesla predicted a future with
no graphite, no cobalt and lithium that will be extracted from a
greenfield site they acquired in Nevada.
Despite years of trying to
remove cobalt from batteries, it has proven to be a formidable
challenge owing to its importance in keeping batteries safe and
extending the life of cells. Following Battery Day, leading cobalt
market expert Caspar Rawles from
Benchmark Mineral Intelligence tweeted "[t]here will be no electric
vehicle industry without cobalt."
Battery manufacturers have
instead opted to lower the amount of cobalt in a cell to decrease
the cost while preserving the integrity of the battery. This is the
battery evolution trend almost all market experts are predicting,
with the nickel-cobalt-manganese (NCM) cathode remaining the
dominant chemistry.
We remain steadfast in our
belief that cobalt will continue to be an essential component in
nickel-rich batteries. The timeline from concept to
commercialization of any new battery technology will take ten or
more years. We note recent market commentary on Tesla having
concluded a long-term cobalt supply deal, which would be at odds
with today's pronouncements.
Most of Tesla's competitors are
developing their electrification plans on the basis of NCM battery
technologies.
On First Cobalt's Plans
Tesla noted the importance of
developing shorter supply chains and focusing on a North American
battery solution. First Cobalt agrees that developing a North
American battery ecosystem is of critical importance, notably in
relation to lowering logistics costs, mitigating supply chain
disruptions and reducing overall carbon emissions from the supply
chain. North America is currently
100% reliant on foreign sources of cobalt for its automotive
industry and First Cobalt is the only company in a position to
change that over the short term.
First Cobalt is committed to
developing a regional battery materials supply chain, initially by
recommissioning and expanding its permitted cobalt refinery in
Canada to provide battery grade
cobalt for the North American and European electric vehicle
markets. Discussions are ongoing with several EV manufacturers.
Over time, this facility could be expanded to recycle black mass
from lithium-ion batteries.
Recent announcements from the
Ford Motor Company and their plans to retool their Ontario assembly plants to support the growing
EV market, the joint battery plant announcement by GM and LG Chem
in Michigan and the announcement
by Volkswagen regarding their Tennessee operations clearly underscore the
opportunity for First Cobalt to play a strategic and critical role
in the next generation of North
America's auto supply chain.
Cobalt will continue to play an
essential role in long range vehicles, keeping cars safe and
prolonging battery life. Contrary to speculation, cobalt will not
be taken out of the battery anytime soon, reinforcing our business
plan. The evolution of battery technology towards lower cobalt
content is positive from the perspective of EV penetration rates
and for cobalt as a critical input.
As it is the scarcest raw
material input and the most expensive commodity, decreasing the
amount of cobalt in battery cells will facilitate higher
penetration rates which in turn will drive adoption rates.
Benchmark Mineral Intelligence forecasts that cobalt demand from
nickel-cobalt-manganese (NCM) batteries used in EVs will increase
from approximately 20,000 tonnes in 2019 to over 730,000 tonnes in
2040, even after cobalt thrifting is taken into account.
About First Cobalt
First Cobalt owns North
America's only permitted cobalt refinery. Cobalt refining is
a critical component in the manufacturing of batteries for electric
vehicles, consumer electronics and industrial applications. Cobalt
is a critical mineral and forms a foundational piece of the next
generation of the North American auto sector. First Cobalt also
owns an advanced cobalt project in the
United States and controls significant cobalt-silver mineral
assets in the Canadian Cobalt Camp.
On behalf of First Cobalt Corp.
Trent Mell
President & Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy
of this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995,
which relate to the proposed development of the First Cobalt
Refinery, the intended processing of cobalt hydroxide feedstock at
the First Cobalt Refinery and the ability to secure financing and
feedstock materials necessary to commence production at the First
Cobalt Refinery. All statements, other than statements of
historical facts, are forward-looking statements. Generally,
forward-looking statements can be identified by the use of
terminology such as "plans", "expects', "estimates", "intends",
"anticipates", "believes" or variations of such words, or
statements that certain actions, events or results "may", "could",
"would", "might", "occur" or "be achieved". Forward-looking
statements involve risks, uncertainties and other factors that
could cause actual results, performance and opportunities to differ
materially from those implied by such forward-looking statements.
Factors that could cause actual results to differ materially from
these forward-looking statements are set forth in the management
discussion and analysis and other disclosures of risk factors for
First Cobalt, filed on SEDAR at www.sedar.com. Although
First Cobalt believes that the information and assumptions used in
preparing the forward-looking statements are reasonable, undue
reliance should not be placed on these statements, which only apply
as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed times frames or at
all. Except where required by applicable law, First Cobalt
disclaims any intention or obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
SOURCE First Cobalt Corp.