Global Cobalt Market Set for Steady Growth
Growth Momentum Continues Through 2028
According to a recent report on ResearchAndMarkets.com, the global cobalt market, valued at US$9.48 billion in 2022, is projected to reach US$17.68 billion by 2028. Additionally, the demand for cobalt is expected to increase from 205.30 kilotonnes in 2022 to 267.33 kilotonnes by 2028, showcasing the significant potential of this silver-white, hard, and lustrous element.
Applications and Increasing Demand
Cobalt's diverse applications, ranging from battery materials and superalloys to cutting tools and magnetic materials, play a crucial role in driving its demand. Its significance is evident in the escalating use of electric motors and devices requiring high-performance magnets. Electric vehicles (EVs) have notably overtaken electronics as the primary cobalt consumer, a trend spurred on by changes in consumer preferences and incentives promoting environmentally friendly vehicles.
Dominant Producers and Market Trends
The Democratic Republic of Congo (DRC) and Indonesia are pivotal players in the cobalt supply chain. In 2022, the DRC accounted for approximately 70% of the global supply. Indonesia, with its rising presence, is anticipated to further fuel the cobalt market's expansion. Both nations' efforts to ramp up production will likely ensure a consistent growth trajectory in mine production for the upcoming years.
Regional Developments and Investments
Initiatives in the DRC aim to regulate the small-scale mining sector and introduce responsible sourcing, enhancing the transparency and ethics in the cobalt supply chain. Indonesia, on the other hand, is expanding its cobalt production capabilities with new processing facilities. A notable investment is the US$2.6 billion Sonic Bay nickel-cobalt project, a collaboration between Eramet and BASF, signifying the region's growing prominence in the cobalt sector.
Notable Agreements
In 2022, Glencore, having produced 43.80 kilotonnes of cobalt, announced a multi-year agreement to supply General Motors Co. with cobalt from its Murrin Murrin operation in Australia.
