An article that I came across that in the Financial Times.

Krsna

Battery demand galvanises price of cobalt
By Chris Flood in London
Published: January 2 2008 02:00 | Last updated: January 2 2008 02:00

The price of cobalt, a rare metal used in products such as batteries for mobile phones and hybrid cars, has surged to record levels amid booming demand and supply problems in the war-stricken Democratic Republic of Congo. Cobalt prices soared nearly 60 per cent last year to $40.25 a pound ($88,735 a tonne), the highest since a modern market for cobalt trading started to develop in the 1970s.Analysts said further gains for the metal are expected in 2008 amid continued tight supply and robust demand.

Cobalt, which is mainly a by-product of copper and nickel mining, is a tiny, illiquid market with only 65,000 tonnes produced annually. But the metal is found in a growing range of applications in batteries, superalloys and the chemicals sector.
Toyota's fuel-efficient hybrid car, the Prius, is powered by a battery that contains about 2.5kgs of cobalt and sales of these types of vehicles are rising strongly. JD Power, the automotive industry consultants, is forecasting that US hybrid-car sales will increase from about 350,000 this year to just over 1m by 2012 with their market share rising from 2.2 per cent to 5.9 per cent.

Big carmakers, such as Renault/Nissan and Daimler are also testing prototypes or developing lithium-ion batteries that use even more cobalt.

Meanwhile, the explosion in the popularity of mobile electronic devices such as mobile phones and laptops is providing further support for cobalt's consumption in the battery market.

Cobalt is also a vital ingredient in superalloys, which are used to make parts in jet aircraft engines. This sector is forecast to see sustained growth during the medium term, particularly in China where about 3,000 new passenger aircraft are expected to be required by 2025.

Supply constraints are also pushing prices higher. Shipments from the Democratic Republic of Congo, one of the world's most important suppliers, have almost dried up since a ban was imposed by the central government on concentrates leaving the DRC in October.

Credit Suisse has just increased its forecast supply deficit for next year from about 1,000 tonnes to 1,680 tonnes and has reduced its forecast for a supply surplus in 2009 from 9,400 tonnes to 5,000 tonnes. The bank predicts cobalt could reach $50 a pound ($110,230 a tonne).

And incidentally. Where is the biggest growth of mobile communication technology and infrastructure. The continent of Africa. The rest of Africa is no doubt fuelling the war in Congo indirectly.

I do not agree with this analysis the issue is that there are no new deposits found thus the Congo government banned prospectors and concentrate on stream lining the already existing ones.

If you see tech products today and probably tomorrow that is what is really going on.