Energy and Capital editor Keith Kohl dives into a $60 billion blunder that could mean the end of Volkswagen.
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Volkswagen's $60 Billion Fatal Blunder
[Keith Kohl Photo] By [Keith Kohl](
Written Nov, 17 2017
âGo pound dirt.â
I wanted to laugh, but it really wasnât a laughing matter.
Back in September, Volkswagen was looking to ink $60 billion worth of long-term supply contracts with the worldâs top cobalt miners.
That plan blew up right in its face.
And the response above was about as gracious as those miners were willing to be.
Of course, this rejection puts quite a damper on VWâs goal to shift to electric cars â with an investment of more than $24 billion â by 2030.
Donât get me wrong, dear reader; I donât want to write off Volkswagen just yet.
After all, weâre still in the very early innings of this game.
But thereâs one reason companies like Tesla and Volkswagen donât have the advantage when it comes time to negotiate these contracts with cobalt miners.
Sometimes a chart can say a thousands words, so keep this one in mind:
[chart11117cobalt]
The situation may not seem crisis-worthy to some today, but that could be even worse for anyone unconcerned with securing their future cobalt supply.
No, this situation is going get much, much worse.
Well, it will for someâ¦
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Teslaâs CEO Accidentally Reveals a Big Secret
Investors have been desperate to learn where Elon Musk plans to get his future lithium supply.
The thing is, [he just accidentally let the answer slip recently!](
And that means early investors can turn $1,000 into an easy $40,600 from Muskâs slip-up.
You can watch this incredible video footage [HERE.](
The Musk Magic
Look, it pays to have a little foresight.
In the case of cobalt, it will mean the difference between taking control of the EV revolution and filing for Chapter 11.
And itâs clear that Volkswagen will drive itself to the verge of collapse if it continues to think itâll be able to take advantage of the worldâs cobalt suppliers.
Itâs too bad it didnât hire Elon Musk...
Years ago, when Teslaâs Gigafactory-1 was just a thought in Elon Muskâs mind, he knew its location would be paramount for its success.
Yet, there was one blunder of his own that has been grossly overlooked by the market.
You see, when the Gigafactory-1 was still in the planning stages, the company announced it would source its raw materials locally.
This is far more ambitious than you might think⦠and one incredible window of opportunity for average investors like us.
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Is This Elon Muskâs Favorite Stock?
Tesla CEO Elon Musk has vowed to make the world transition entirely to electric vehicles.
And heâs convinced that Teslaâs success hinges on securing its supply of just one super-critical element.
Hereâs an undiscovered [$1 investment gem]( thatâs on its way to $5 a share. Your gains could surpass 400% in the next 12 months.
[Click here to find out how.](
If youâve been following me lately here on the pages of [Energy and Capital,]( then you know just as well as I do that thereâs a serious crisis buried in the worldâs cobalt supply.
Weâre talking about an industry where 60% of supply is directly involved in some of the most horrific instances of child exploitation in the world.
Some have even started calling cobalt Muskâs Blood Metal.
At the point in time when Teslaâs Gigafactory was being constructed, the U.S. hadnât mined for cobalt in over 40 years.
But thatâs about to change.
Take one more look at that demand chart above for cobalt.
This is more than simply a Tesla problem.
Volkswagen, Daimler, BYD, Ford, Mercedes-Benz â all of these automakers will be fiercely fighting to secure their own supply!
And this is just for vehicles.
Even the tech giants arenât immune to this crisis.
Apple has come out and stopped all purchases of cobalt from artisanal mines (think small-scale cobalt miners working independently of the major mining companies).
This is the future decision that EVERYONE will be forced to make over the next decade.
Every. Single. One.
As for Musk, heâll be less concerned than the restâ¦
Itâs not pure coincidence that he chose Nevada for the location of his first Gigafactory.
Right now, thereâs a tiny company trading today that controls the only advanced-stage, environmentally permitted cobalt project in the United States.
And you can pick up shares for around a buck.
But donât take my word for it⦠I strongly urge you to [check it out for yourself right here.](
Until next time,
[Keith Kohl Signature]
Keith Kohl
[[follow basic]@KeithKohl1 on Twitter](
A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of [Energy & Capital]( as well as Investment Director of Angel Publishing's [Energy Investor.]( For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations â all ahead of the mainstream media. For more on Keith, go to his editor's [page](.
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[IN CASE YOU MISSED IT](
My colleague, Christian DeHaemer, just exposed a serious cover-up by some of the biggest banking institutions in America.
I canât get into the details here⦠this is something you need to see firsthand.Â
The moment I read through his evidence, a chill ran down my spine.
Itâs a massive gold scandal on an unprecedented scale â one that stands to make individual investors a veritable fortune.
You canât afford to sit on this one.
[See Chrisâ full story here.](
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