Cars need commodities
Zinc is an important raw material in the automotive industry. Around 60 percent of global zinc production is used for galvanizing steel to prevent rust formation. Mild steel and car production devour a huge part of it. According to analyses by Goldman Sachs, galvanized production in China, which is important for the zinc market, will increase. As production has been sluggish in recent quarters due to environmental policy measures.
In addition, the demand for the new battery technology could lead to further demand for zinc. Zinc is also used as a nutrient additive in fertilizers. Some zinc mines have been closed recently, which could limit supply in the future. As a result, zinc companies with good projects such as Zinc One Resources can look to the future with confidence.
In Peru, Zinc One Resources - https://www.commodity-tv.net/c/search_adv/?v=298394 - operates two zinc projects, Bongará and Charlotte-Bongará, which are expected to be ready for production in the near future. Both projects have been owned by Zinc One since 2017 and host high grade zinc mineralization at or near surface.
Another raw material, cobalt, is particularly important for booming electromobility. This is used not only as an alloying element, but also in the lithium-ion batteries. This is because the lithium-cobalt accumulator has a very high energy density. The rising demand for accumulators for electric mobility and mobile electronics alone is expected to lead to a strong increase in the consumption of cobalt.
Privileged are cobalt projects outside the problematic Congo. This also applies to the cobalt properties of M2 Cobalt in Uganda, East Africa - https://www.commodity-tv.net/c/search_adv/?v=298620. The company controls almost 2,500 square kilometres of promising cobalt land there and is located in a politically stable country.
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