EV Market Might Be Threatened by Congo's cobalt tax

[Selva + 252]

The Democratic Republic of Congo may soon, if approved by the Senate, more than double the tax mining companies operating in the country pay on exports of cobalt. This country is responsible for about two thirds of global cobalt output. Will it affect EV  market? 

[Adam Varga + 123]

Knowing that cobalt is a main component in the lithium- ion battery, we could expect that this tax increase from 2 percent to 5 percent  will hit the EV market very hard.

[Selva + 252]

Cobalt had a great last year ending it with 129 percent annual surge caused by constant fear with supplies and high demand from battery market.  

[Vlad Kovalenko + 115]

All this situation with tax increase and of course political risk in this country will make investors to run away and look for this metal somewhere else. 

[Marina Schwarz + 1,576]

Yeah, they're already running away but resource nationalism is spreading and could give them a headache in many places. Is there actually a reason for the supply fright? Any signs of deficit? Or is it preemptive fright?