3 Top Canadian Cobalt Stocks for March 2025

ByMathieu Litalien Published On:

Key takeaways

Critical Role in the EV Revolution: Cobalt is a key component in EV batteries, and Canadian cobalt companies are positioned to benefit from the accelerating global demand for battery metals.

Diverse Investment Opportunities: Investors can choose from different business models, including large-scale production, high-grade exploration, and low-risk streaming agreements, providing varied exposure to the cobalt sector.

North American Supply Chain Advantage: With increasing focus on ethical and localized sourcing of critical minerals, Canadian cobalt stocks offer a politically stable and ESG-friendly alternative to cobalt from regions like the DRC.

3 stocks I like better than the ones on this list.

Cobalt has many different uses. You may not know this, but a radioactive form of the element is used to treat cancer. It is also added to aircraft parts to help make them sturdier and less prone to failure.

It is also used in electroplating, which adds a layer of metal to specific parts to protect them, help them conduct electricity, or make them look better, depending on the circumstances.

Cobalt is also a primary input in lithium-ion batteries, an industry with long-term growth potential as we move into a greener world. Several high-profile companies are working on battery technology in North America, including Tesla and Apple. 

And with the advancements in electronic devices, it will continue to be utilized in electronics for the foreseeable future.

Some day, bulls argue, we’ll all live off the grid using nothing but the sun’s rays and giant batteries to generate the electricity needed to sustain ourselves. And we’ll drive our electric cars around, too.

For this reason, there is large demand for identifying the top cobalt stocks in the country. However, you really need to be careful here. I will have a list of some options below, but it is very hard to identify stocks that are not highly volatile and speculative in nature.

I often call these early stage exploration companies scratch off tickets. You lose on most, break even on some, and win on very few. If I were to buy some of these stocks, I would make the smaller ones a very small portion of my portfolio, and it would be with a portion I was comfortable with if it went to $0.

What are the top Canadian cobalt stocks?

Leading nickel and cobalt producer in Cuba

Sherritt International (TSE:S)

Sherritt International is a key producer of nickel and cobalt, with its primary operations based in Cuba. The company is involved in mining, refining, and producing high-purity cobalt and nickel for global markets. Sherritt also operates in the energy sector, generating electricity in Cuba and producing oil. Its cobalt production is primarily a byproduct of its nickel mining operations, making it a significant player in the battery metals supply chain.

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  • Major producer of cobalt outside the DRC, offering supply chain diversification.
  • Strong partnership with the Cuban government ensures access to critical resources.
  • Positioned to benefit from the global shift toward EVs and battery storage.
  • High-purity cobalt production caters to premium markets in battery technology.
  • Focus on sustainable mining practices aligns with ESG-focused investors.
  • Ongoing debt restructuring efforts could improve financial stability and unlock shareholder value.
  • Battery Metal Demand: As EV and battery production grows, the demand for cobalt, a key material, continues to rise.
  • Cuban Relations: Watch for updates on Sherritt’s partnership with the Cuban government, as political stability affects operations.
  • Nickel-Cobalt Synergy: Sherritt’s dual focus on nickel and cobalt provides a strong advantage since both metals are critical for EV batteries.
  • Debt Management Progress: Investors should track Sherritt’s efforts to restructure debt, which could significantly impact future profitability.
  • Political Risk: Heavy reliance on Cuban operations exposes Sherritt to geopolitical uncertainties.
  • Commodity Price Volatility: Fluctuations in cobalt and nickel prices can impact revenues and profitability.
  • Debt Levels: Sherritt’s financial health is tied to its ability to manage and reduce its significant debt load.
  • Environmental Challenges: Mining operations face increasing scrutiny, and compliance with regulations could raise costs.

Junior miner focused on high-grade cobalt and silver exploration

Canada Silver Cobalt Works (TSXV:CCW)

Canada Silver Cobalt Works is a junior mining company focused on exploring and developing high-grade cobalt and silver deposits in Northern Ontario. Its flagship Castle Silver Mine has a rich history of silver production and is also a promising source of cobalt. The company is working on advanced processing technologies, including its proprietary “Re-2OX” process, which extracts battery-grade cobalt and other critical metals with minimal environmental impact.

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  • High-grade cobalt and silver resource at the Castle Mine.
  • Proprietary Re-2OX process could make it a leader in battery-grade cobalt refining.
  • Strong focus on ESG-friendly extraction methods to attract socially conscious investors.
  • Located in Canada, providing a politically stable and ethical source of cobalt.
  • Significant upside potential as a junior miner with exploration successes.
  • Strategic positioning to meet North America’s growing demand for critical battery metals.
  • Castle Mine Exploration: Continued exploration success at the Castle property could significantly boost the company’s resource base.
  • Re-2OX Technology Development: The commercialization of this eco-friendly extraction technology could position CCW as a leader in sustainable cobalt refining.
  • North American Cobalt Demand: As North America seeks to localize battery supply chains, CCW is well-positioned to benefit.
  • Silver Prices: Since silver is a byproduct of CCW’s operations, rising silver prices can provide additional revenue streams.
  • Exploration Stage Risk: As a junior miner, CCW’s success hinges on proving out its resource base, which remains speculative.
  • Funding Needs: The company may require additional funding for exploration and technology development, which could dilute shareholder value.
  • Market Competition: Larger, established miners could overshadow CCW’s efforts to secure battery metal contracts.
  • Metal Price Fluctuations: Volatility in cobalt and silver prices can directly impact the company’s growth potential.

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Emerging cobalt producer with a flagship project

Fortune Minerals (TSE:FT)

Fortune Minerals is a Canadian mining company focused on developing its NICO project in the Northwest Territories. The project targets critical minerals like cobalt, gold, bismuth, and copper, positioning the company as a future supplier for EV battery production. Fortune’s long-term goal is to become a key player in supplying ethically sourced battery metals.

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  • Owns one of Canada’s largest undeveloped cobalt projects.
  • Strategic exposure to the EV and battery supply chain.
  • Multiple revenue streams from gold and other metals.
  • Located in a mining-friendly jurisdiction, mitigating geopolitical risk.
  • Possesses long-term agreements for refining and partnerships.
  • Strong potential upside from rising demand for cobalt.
  • EV Growth: Surging demand for electric vehicles drives the need for more battery materials, including cobalt.
  • Government Support: Canada’s initiatives for domestic critical mineral production could benefit Fortune.
  • Battery Recycling: Companies investing in cobalt recycling could influence long-term demand.
  • Project Development Progress: Key milestones like permitting, financing, and construction will shape its growth trajectory.
  • Project Delays: Any issues in permitting or construction could push back revenue timelines.
  • Commodity Prices: Fortune relies heavily on cobalt prices, which can be volatile.
  • Financing Needs: As a development-stage company, securing sufficient capital is crucial.
  • Competition: Other cobalt projects globally could dilute its market position.

Precious metals streaming company with cobalt exposure

Wheaton Precious Metals (TSE:WPM)

Wheaton Precious Metals is one of the largest precious metals streaming companies in the world, focusing primarily on gold and silver. However, it also has exposure to cobalt through its streaming agreement with Vale’s Voisey’s Bay mine in Newfoundland and Labrador. This unique arrangement allows Wheaton to benefit from cobalt’s rising demand without directly operating any mines, giving it an edge in the critical minerals market.

P/E: 66.0

5 Yr Revenue Growth: 8.3%

5 Yr Earnings Growth: 43.3%

5 Yr Dividend Growth: 11.5%

Yield: 0.8%

  • Unique exposure to cobalt through a low-risk streaming agreement.
  • Diversified portfolio of precious metals provides steady cash flow and downside protection.
  • Strong balance sheet and history of shareholder returns through dividends.
  • Voisey’s Bay cobalt production aligns with growing EV demand.
  • Streaming model eliminates operational risks typically associated with mining.
  • Positioned to benefit from rising demand for both precious metals and cobalt.
  • Voisey’s Bay Cobalt Production: Monitor production volumes from Vale’s operations, as they directly impact Wheaton’s cobalt revenues.
  • EV Battery Growth: Rising EV production could drive increased demand for cobalt, benefiting Wheaton’s streaming revenue.
  • Precious Metals Prices: Higher gold and silver prices provide stability for Wheaton’s overall business model.
  • Geographic Stability: The Voisey’s Bay mine is located in Canada, offering a politically stable and ethical cobalt supply.
  • Reliance on Third Parties: Wheaton’s streaming model depends on the operational success of its partners, like Vale.
  • Commodity Price Risk: Fluctuations in both cobalt and precious metals prices can impact Wheaton’s revenues.
  • Limited Cobalt Exposure: While Wheaton has cobalt exposure, it remains a small portion of its overall portfolio.
  • Regulatory Risks: Changes in mining regulations or environmental laws could indirectly affect Wheaton’s streaming arrangements.

Unfortunately, investing in Canadian cobalt stocks isn’t an easy endeavour

Hundreds of gold and silver stocks and dozens of large-cap diversified miners exist. It can seem intimidating if you’re new to buying stocks here in Canada. But don’t fret.

Since so much cobalt production comes from unstable areas – including the world’s largest producer, the Democratic Republic of the Congo, Russia, and the Philippines – it’s difficult for Canadians looking to buy stocks to find pure plays on the metal. The Democratic Republic of Congo produces 70% of the world’s cobalt.

The British mining giant Glencore is the world’s largest cobalt producer. It produces about 30% of the world’s supply. But cobalt production is almost an afterthought; the company primarily focuses on coal, copper, and nickel.

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The bottom line on Canada’s top cobalt stocks

There’s no doubt about it. Investing in Canada’s top cobalt stocks is a risky endeavour. We can think of many other Canadian stocks to buy, but if you have an appetite for high-risk, you’ve come to the right place.

The first three cobalt stocks offer fantastic upside potential if demand for the metal really takes off. Each of these stocks could roar 500% or even 1,000% higher if we start using cobalt in a big way.

Alternatively, a royalty company like Wheaton is a stock that is a little more reliable, with strong cash flow streams and a wide variety of metal exposures.

If you’re interested in the cobalt sector, perhaps the best way to play it is a small investment, something you can afford to lose.

You should still make a decent return if cobalt takes off, and you won’t lose much if the thesis doesn’t work out.

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