Idaho to be Epicenter of Global Cobalt Demand
By Sarah Clendenon • June 23, 2024The timeline of global cobalt demand has created an on-again, off-again scenario for the only cobalt mine in the United States — which is in Salmon, Idaho. The mine was built by an Australian company, Jervois.
The Jervois mine, called the Idaho Cobalt Operation (ICO), was set to open in October 2022. A gathering of dignitaries took place at that time, complete with Jervois executives, the Australian Ambassador to the U.S., the Governor of Idaho, and an official ribbon cutting ceremony.
Photos courtesy of Jervois Global Commences Commissioning at Idaho Cobalt Operations in the U.S. – Junior Mining Network
So, why is cobalt so important? As this article explains, 30 years ago no one cared about cobalt. What do we have now that makes it so valuable?
“Lithium ion batteries.
AdvertisementThose would be the batteries in our phones and electric cars. Cobalt is an essential material in those batteries: It stabilizes them and gives them a longer life. As we all became more and more addicted to our phones and devices, and as countries like the US and China began investing heavily in electric vehicles, cobalt became the center of attention.”
The demand for phones, tablets, and electric cars soared during 2020 and 2021. At the same time, the Biden Administration was determined to find alternatives to the use of fossil fuels. Jervois saw the opportunity to capitalize on the rare find of this mineral in Idaho. The same article says,
“Batteries are a key part of the strategy to replace oil as a main source of energy and if that energy supply is put in jeopardy, it threatens the economy’s ability to function…. The Biden Administration even identified a lack of cobalt mines as a threat to national security.”
AdvertisementAccording to Jervois’ website,
“ICO is the only primary cobalt mine in the United States and will supply a critical metal necessary for electric vehicles, energy generation and distribution, defense and other industries and plays a key role in the transition to the low carbon economy.”
Demand was soaring… until it wasn’t anymore. At the beginning of 2022 the price of cobalt was $40 per pound. By the time of the ribbon cutting ceremony in October 2022, the price had fallen to $25. It continued to fall, hitting just $15 per pound. Jervois would have been operating the mine at a loss for that price, so just after the ceremony, the mine was closed before it had even opened. Nearly 300 employees were laid off.
Casper Rawles of Benchmark Mineral Intelligence said,
“In the case of cobalt, there was a massive ramp up in production during the pandemic as people bought more devices than ever before. Markets are still flooded with supply. At the same time, global demand for electric vehicles, especially in China, has declined. That combination has been enough to keep cobalt prices depressed for more than a year.”
Bryce Crocker, owner of the ICO mine, was able to keep the operation on standby because of companies and investors contributing to the $1M per month cost and also a $15M check from the U.S. Department of Defense.
That brings us to now, June 2024. The price of cobalt is even lower, $12.32 per pound. But because of the importance of cobalt to national defense and the Biden Administration’s commitment to a departure from the use of oil, the ICO mine is opening again.
“Jervois is encouraged by its discussions with the U.S. Government regarding the importance of domestic cobalt supply to the U.S. economy and national defense.”
The company is keeping its focus on ESG (Environmental Social Governance) policies as it moves forward in Idaho. You can find a list of their corporate governance statements, policies, and standards here.
“At ICO, Jervois is applying best-in-class environmental and safety standards, systems, and techniques in the production of cobalt in Idaho as part of its overarching environmental, social and governance (“ESG”) policies. Key activities related to both the regulatory requirements at ICO as well as voluntary activities form the basis of our aim to be a positive contributor to the local and regional communities, businesses and environments.”
Other mining companies are interested in Idaho for the riches below the surface. This article details some of them and says,
“In addition to Jervois, more than a dozen Canadian and Australian-controlled mining and exploration companies valued at over $300 million are conducting exploratory drilling operations for gold, copper and cobalt on the Salmon-Challis National Forest. Others are still in the permitting process.”
The Bureau of Land Management within the U.S. Department of the Interior oversees the laws and regulations regarding mining. You can find the information here.
Feature photo courtesy of mining.com.
Tags: Australia, Biden Administration, BLM, Brad Little, Bureau of Land Management, Canada, Cobalt, Electric Cars, Environmental Social Governance, ESG, Idaho, Jervois, Lithium Ion Batteries, mining, Salmon, Smart phones, U.S. Department of the Interior
21 thoughts on “Idaho to be Epicenter of Global Cobalt Demand”
Comments are closed.
Too bad batteries don’t generate energy. They aren’t a real solution to an energy shortage. They only store energy. Some other fuel, usually fossil fuel, has to generate it, because wind and solar panel farms can’t compete with coal or oil, and they require a ton of energy just to build the parts for them. The huge amounts of metal required to build 1 wind turbine makes you wonder if it will generate enough energy to even compensate for it’s own creation, from mining the metal ores, to smelting, then the machinery needed to make the raw metal ore into something useful. If you really think about all the transportation of the ore and it’s products around to different factories to make the various parts, then haul them and set up the wind turbines, using alot of heavy machinery, you have to wonder at what point that wind mill would generate enough energy just to make up for what was used to make it. Be sure to figure in the gas of every worker who drove to work at whatever place had a part in it’s manufacture. It all counts if you’re going to be realistic about energy conservation.
Driving along the Columbia River and south from Biggs Junction at one time was a scenic trip. It seems every trip those wind turbines move further south. NOT SCENIC anymore.
You are so correct. All of this is to appease the global warming/climate change lie that is based on zero truth. We have more than enough oil and natural gas to last us until something comes along that can really produce energy more efficiently and they need to account for all the costs of production of that replacement, not just shift the costs and environmental damage to some other place. Wind has been proven to not pay. Solar has too many problems and limitations and again, needs batteries. None of this junk recycles. But, our Earth keeps creating more oil and gas ( it is not from dinosaurs), which makes me wonder what will happen if we stop using it? Nobody has addressed that….
Well, if we stopped using so-called ‘fossil fuels’ (a misnomer as you pointed out…) just because the global fascists say so, Western Civilization will crumble and revert back to the pre-petroleum days except worse.
No readily available, affordable energy.
They will NOT allow horses as transportation.
They will NOT allow burning wood for fuel.
They will NOT allow using animals for anything.
They WILL force everyone into ‘smart’ cities where your consumption (food, energy, etc…) will be monitored and regulated.
Not science fiction.
They have been saying these things publically for some time.
Unfortunately for them, it is NOT going to happen.
NCSWIC.
Remember kids, when governments pick winners and losers, we the people always lose.
We subsidize a money losing operation because globalist #9 doesn’t want globalist #3 to lose his money. Let the peasants pay for it.
Its no wonder farmers were cut off from their water. 500k acres worth just so a foreign company with over 200 congress and senate members have financial interest in the mine which requires huge amounts of water to operate 24 hours.
You are so right !!!!!!!All about the money and who is going to get it !
Thank you
There is a video going around that states $15 mill was appropriated to Jervois Global from the Ukraine Supplemental Appropriation Act: I don’t know how to confirm that, but it would be no surprise to me. Are there any honest politicians?
Huge red flag when it states the company embraces ESG- I fear that the politicians will see this as a cash cow and the good people of Salmon and Lemhi County interests will be put secondary to mining operations that potentially can impact water and out door activities that are the mainstay of the area.
LOL, DIE is coming to Salmon! I’m sure all those unqualified Black Woman that couldn’t cut it at Boeing will fit right in up there. We’ve got Kill Gates buying our farm land, and the Aussie Crown controlling our minerals, and God knows what China’s doing around here, Globalism is thriving here. There will never be a political solution to this mess, the money will see to that, the question is will the people of this State ever go hands on before it’s too late?
We need to STOP the mine from reopening. It isn’t worth it. The jobs will be temporary, and the cost of cleanup? That cost will fall on us the tax payers. Seems like everyone in the world is coming to destroy OUR country, then run home. The people that are SUPPOSED to work for US are taking money to destroy us, not protect us. It’s sad.
I understand that mining is unavoidable for everyday life. But I don’t understand why only Canadian and Australian mining companies exploit and profit from US minerals. Could it be that after the mines close, they can escape back to their countries and leave the environmental cleanup for us?
Yes Tom, you are right. The clean up will be up to the locals. And the locals are tired of being lied to. I have lived in Salmon all my life and I do not trust ANY company coming in saying we have so many jobs coming. The local economy gets all geared up for these workers spending money and then guess what. 300 people get laid off. Salmon has a population of 3100.140 miles from any interstate highway. Locals suffer. Our economy suffers. And remember we are still a right to work state. Minimum wage is still at $7.25 an hour. And some businesses around here still start at that. Now imagine a young man needing that mining job. Gets here. Can’t find housing, there is no housing. Families here are living in travel trailers. And rent is $1200 a month for that trailer. So this young man buys a house. $300,000. Nice. He’s set. Then 3 years from now the mine closes. No income, no house and he ends up leaving. Win, win all around isn’t it. Again, yes the locals are the ones to suffer.
Whenever I read stories like this, I’m reminded of Ted Kaczynaki’s manifesto. Was he really that crazy???
He was definitely on to something. Unfortunately, he went crazy.
AND…. some are finally realizing the long term plans that started way back when.
Like with every other state, these companies are allowed in, to “build the economy” so to speak to only have the real agenda come out way later down the line… by then, the land is poisoned, the nature and its balance is destroyed, our waters are being polluted and all our resources for the people OF Idaho are being stolen and since its already there, there isnt much we can do about it… and many are slapping their foreheads once its out because not enough people stood up to block it. I’m sorry, but IMO, NO foreign companies or outside countries should be allowed a piece of the USA to strip it like they did in their own countries.
For those who remember “Avatar”…nuff said.
Let’s face it — We have no Representation and haven’t for a very long time. The only ones who have it are those who are willing to buy it.
End Representation and either get a Lottery system or a system where everyone votes for everything since we can all do that from our computers.
Fascists systems suck – that’s why no one in Russia wanted to fight in WWII so Stalin had to kill a million of them so they would volunteer.
Just as now, no one wants to fight for the MIC – KEYs and get slaughtered on the killing fields of WWIII just so the NWO can get their genocide numbers up to where their Masters are pleased.
Genocide is here. “They” are working on the “genetically engineered bird flu” to kill the rest of us off.
We are also getting a new “DATA” center. Remember Snowden told us about the one in Utah.
Things are really screwed up. If we don’t get our people to vote here we will be in deep trouble. I hear we had another low turnout. This is very depressing, we need our people to be engaged but the ABC channels hide all the real facts and most people have no clue to what is happening.
We are on the edge of loosing our country and it’s really close. My big concern is that Obiden will throw a new “plannedemic” on us and we won’t have an election. He’ll declare Marshall Law. I’m praying this won’t happen but nothing surprises me anymore.