The Cobalt market is experiencing unprecedented growth, primarily driven by its indispensable role in the rapidly expanding battery sector, particularly for electric vehicles (EVs) and portable electronics. Cobalt is a key component in the cathodes of lithium-ion batteries, which power everything from smartphones and laptops to the burgeoning fleet of electric cars. The surge in EV adoption globally, fueled by environmental concerns and government incentives, has made battery manufacturing the largest consumer of cobalt, accounting for a significant portion of its total demand. Beyond batteries, cobalt also plays a crucial role in superalloys, which are vital for aerospace components requiring high-temperature resistance and strength, such as those found in jet engines.

Other significant applications include its use in catalysts for various industrial processes, hard metals for cutting tools, and in pigments and ceramics. The market has seen a notable increase in demand, with overall cobalt consumption exceeding 200 kilotons in 2024, marking robust year-on-year growth. While the market has faced periods of oversupply due to increased production, particularly from the Democratic Republic of Congo, prices have shown some stabilization. Regionally, Asia-Pacific, with China at its forefront, dominates the cobalt market, largely due to its extensive battery manufacturing infrastructure and burgeoning EV market. As the world continues its transition towards a low-carbon economy, the demand for cobalt is expected to remain strong, pushing for continued innovation in sustainable sourcing and recycling to meet future needs.