The Clean TeQ Holdings Limited (ASX: CLQ) share price continues to climb.
The nickel and cobalt company has seen its stock rise by more than 12 per cent since Monday and it has gained more than 200 per cent in the past year.
If we look back further, we can see its share price has surged since early 2015 when it was trading at about 6 cents.
Today, Clean TeQ shares are changing hands for around $1.60, representing a gain over just under three years of more than 2,550 per cent.
The question is, can Clean TeQ keep up this astonishing momentum?
Clean TeQ says its mission is to produce metals that "are highly geared to disruptive changes in technologies and markets, particularly in global energy and transport".
Certainly, Clean TeQ, a hopeful miner of key battery making ingredients cobalt and nickel, is well placed to achieve its goals with the price of cobalt doubling in the past year and the price of nickel rising by more than 50 per cent from June to November.
Analysts have estimated that nickel demand for electric vehicle batteries will rise to about 220,000 tonnes in 2025, up from about 40,000 tonnes last year.
The total global demand of about 2 million tonnes this year is expected to rise to 2.2 million tonnes by 2025, according to Reuters.
But it should be noted that the price of nickel has eased off since early November.
Further, it is also believed that a shortage of nickel to accommodate battery production is a long way off.
But Clean TeQ, with a market cap now approaching $1 billion, is also looking to cobalt and that's probably where the money will be for the company.
Clean TeQ recently announced it had struck a binding five-year offtake agreement with Shanghai listed Beijing Easpring Material Techgy Co Ltd (SHE 30073) to supply the Chinese company with 20 per cent of production from Clean TeQ's Syerston project.
Although Clean TeQ is yet to turn a profit, following an initial commissioning and ramp up period, the company believes its nickel and cobalt project will eventually generate an estimated free cash flow of about $400 million per year during key stages of the project's life.
Other companies with a hand in cobalt have also done well this week.
Ardea Resources Ltd (ASX: ARL) a developer and explorer of cobalt assets, saw its share price climb 9 per cent on Wednesday
And Barra Resources Limited (ASX: BAR), whose share price has struggled a bit lately, was up by almost 4 per cent.
