In the past year cobalt has appreciated from roughly $55,000 per metric ton to more than $91,000 per metric ton. Prices have risen dramatically because of the increasing demand for electric cars and the perception of supply constraints. The largest cobalt mines in the world are in the Congo, accounting for about 58 percent of global cobalt production in 2017, and subjecting the market to significant geopolitical risks.

Since 2001, global cobalt production has increased from nearly 37,000 metric tons to 110,000 metric tons, while reserves have remained fairly flat at roughly 7 million metric tons. As illustrated by the accompanying bar chart on this page, at today’s production levels, the reserves of cobalt would last for 64 years, in line with or better than most other commodities except for lithium. Moreover, higher prices should encourage increased exploration.

Cobalt is a byproduct of nickel and copper mining. Consequently, its mining and reserves are tied more closely to the price of those primary metals than to cobalt. Even if the prices of copper and nickel were to disappoint during the next few years, newer batteries are becoming less cobalt dependent.

In the meantime, though, The Wall Street Journal writes that cobalt prices have doubled in the past 12 months, as technology and automobile companies have rushed to secure supplies.

Congo’s state-owned mining firm, Gecamines SA, is pushing to renationalize the Central African nation’s rich natural resources, in a move that could roil some of the world’s largest mining companies and have implications for industries ranging from technology to auto production. Gecamines chairman Albert Yuma Mulimbi told The Journal that Congo has not benefited enough from its mining production.

Higher cobalt prices “give us full reason” to renegotiate joint ventures, Yuma is quoted as saying. “A bigger piece of the cake, that’s the ultimate goal,” he said, adding that eventually, he would like to revert to 100 percent ownership of all mines in Congo.

Written by ARK Investment Management. The Wall Street Journal also contributed to this report.