Global cobalt market.
Cobalt prices have soared since 2016 in expectation of surging demand from automakers. An electric vehicle (EV) contains around 10 kilograms of cobalt in its lithium-ion battery. The Democratic Republic of the Congo (DRC) accounts for more than 60% of global supply and for most of the incremental supply anticipated in the next two years, hampering the structural transformation of cobalt demand. DRC’s cobalt output rose by 34% in January-March, easing near term constraints and the price of cobalt sulfate has fallen by more than 25% since the end of March.
Having joined lithium on the US government's list of critical minerals, cobalt may remain on the list for years to come.
Metal coating designers will increasingly replace tungsten and copper with cobalt to increase transistor performance by up to 15%.
The ‘Responsible Cobalt Initiative’ will tackle DRC child labour and a blockchain will track the mineral from artisanal pits to devices.
A Spanish-Chinese deal has kept Inga 3, a Congo hydropower project, on track -- it could allow exporters to beneficiate cobalt locally.
