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Cabot Picked for Development of Low-Cobalt Cathodes by US DOE


Cabot Corporation CBT has been chosen by the U.S. Department of Energy (DOE) to take part in an $80-million investment in advanced vehicle technologies research. Notably, the company will contribute to the research and development of low-cobalt active cathode formulations for next-generation lithium-ion batteries.

In the future, cobalt could pose a supply risk. It is an expensive, foreign-sourced critical material. Cabot’s research projects are focused on exploring sustainable, affordable options as well as improving access to electric vehicle technology.

Cabot will leverage its battery materials manufacturing expertise to expand footprint in the batteries and energy materials market to drive innovation for next-gen batteries. This will also enable the production of low-cost, sustainable batteries.

The DOE is investing in several projects to support advanced vehicle technologies that can enable affordable mobility, reduce dependence on foreign sourced critical materials, strengthen domestic energy security, and enhance U.S. economic growth. Out of the $80-million investment, around $32 million has been allocated for battery and electrification, which includes $2.9 million for research of aerosol manufacturing technology for low-cobalt lithium-ion battery cathodes.

Cabot will partner with Argonne National Lab and SAFT for this project. Argonne will help in the synthesis of low-Cobalt cathode compositions, while SAFT will support the manufacture of batteries to validate performance of low-cobalt cathode formulations.

In a year’s time, shares of Cabot have lost around 2.7% against the industry’s decline of 12.3%.

Cabot, during its fiscal third-quarter call, said that it expects its Reinforcement Materials segment to maintain its strong performance in the fiscal fourth quarter on solid operational and commercial execution. For the Performance Chemicals segment, it expects to maintain margins while driving volume growth at specialty Carbons and Formulations.

The company is taking appropriate pricing actions to offset feedstock cost inflation. It is also committed toward driving product mix at Performance Chemicals through the launch of products and applications. Cabot is also expanding its global capacity by more than 300,000 metric tons through a combination of operational improvements, plant expansion and debottlenecking projects.

Cabot Corporation Price and Consensus

Zacks Rank & Other Stocks to Consider

Cabot is a Zacks Rank #2 (Buy) stock.

A few other top-ranked companies in the basic materials space are Air Products and Chemicals, Inc. APD, Methanex Corporation MEOH and Nucor Corporation NUE.

Air Products has an expected long-term earnings growth rate of 13.3% and a Zacks Rank #1 (Strong Buy). The company’s shares have gained 4.8% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Methanex has an expected long-term earnings growth rate of 15% and a Zacks Rank #1. Its shares have rallied 50.8% in a year’s time.

Nucor has an expected long-term earnings growth rate of 12% and a Zacks Rank #2. The company’s shares have risen 6.3% in the past year.

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