The global cobalt market size is undergoing significant expansion, driven by increased demand across multiple industries, particularly in the battery sector, where it is an essential component in the production of rechargeable batteries. Cobalt, a critical raw material, plays a crucial role in powering modern technology, including electric vehicles (EVs), smartphones, and laptops. As of 2024, the global cobalt market attained a volume of around 200.10 kilotons (KMT). The market is projected to grow at a compound annual growth rate (CAGR) of 8.90% between 2025 and 2034, with the volume expected to reach almost 469.38 KMT by 2034.

Market Size and Growth Projections

The global cobalt market has been steadily growing due to its pivotal role in energy storage and electronic manufacturing. In 2024, the market attained a volume of approximately 200.10 KMT. As industries and technologies evolve, the demand for cobalt is expected to increase significantly, with the market projected to grow at a CAGR of 8.90% during the forecast period from 2025 to 2034. By 2034, the market is expected to reach a volume of almost 469.38 KMT.

The growth of the cobalt market is primarily attributed to its increasing use in lithium-ion batteries, particularly for electric vehicles (EVs). As governments and industries around the world focus on reducing carbon emissions and adopting more sustainable energy practices, the demand for EVs and energy storage solutions is expected to drive further market growth.

Key Drivers of Market Growth

Several factors are driving the growth of the global cobalt market. These drivers are largely tied to the demand for clean energy solutions, the expansion of the electric vehicle market, and the critical role cobalt plays in energy storage and battery technologies.

1. Rise in Electric Vehicle (EV) Demand
   One of the most significant drivers of the cobalt market is the increasing demand for electric vehicles (EVs). Cobalt is used in lithium-ion batteries, which are essential for EVs due to their high energy density and long battery life. As global governments push for more sustainable transportation solutions, the adoption of EVs is expected to surge. The demand for cobalt is expected to rise in parallel, as automakers ramp up production of EVs to meet ambitious emissions targets and consumer demand.

2. Expanding Energy Storage Solutions
   With the increasing reliance on renewable energy sources such as solar and wind, there is a growing need for efficient energy storage solutions to balance supply and demand. Cobalt is a key component in the production of batteries that store renewable energy. The demand for energy storage systems in grid applications and for off-grid solutions in developing regions is expected to boost the cobalt market. Batteries that use cobalt are crucial for stabilizing the supply of renewable energy, ensuring reliable power distribution even when sunlight or wind is unavailable.

3. Technological Advancements in Battery Technology
   Advances in battery technologies are another significant driver for the cobalt market. As the energy density and efficiency of batteries improve, the need for high-quality, reliable materials like cobalt becomes even more critical. Manufacturers continue to innovate in battery chemistry to reduce reliance on cobalt while maintaining performance. However, cobalt still remains an essential material in many battery types, particularly for high-performance applications like electric vehicles and renewable energy storage.

4. Supply Chain and Geopolitical Factors
   Geopolitical factors and the supply chain of cobalt play a significant role in market growth. The Democratic Republic of the Congo (DRC) is the largest producer of cobalt, accounting for more than 60% of global supply. However, the DRC’s political instability and concerns over labor conditions have created uncertainty in the cobalt supply chain. This has led to increased interest in diversifying supply sources, such as recycling cobalt from used batteries and exploring new mining operations. These developments are expected to impact the cobalt market over the coming years.

Challenges in the Cobalt Market

While the global cobalt market presents significant growth opportunities, several challenges could hinder its progress. These challenges include supply chain constraints, ethical concerns, and the development of alternative battery technologies.

1. Supply Chain Constraints
   As mentioned, the DRC’s dominance in global cobalt production poses a risk to the stability of the cobalt supply chain. The region's political instability, regulatory challenges, and labor conditions create uncertainties for companies that depend on cobalt. Furthermore, the reliance on a single region for such a critical resource makes the global cobalt market vulnerable to fluctuations in supply, price volatility, and geopolitical risks.

2. Ethical and Environmental Concerns
   The ethical implications of cobalt mining, particularly in the DRC, have garnered significant attention. Issues related to child labor, human rights violations, and environmental degradation have sparked concerns among consumers, governments, and industry stakeholders. This has led to calls for more responsible sourcing practices, as well as increased investments in cobalt recycling and alternative sources of cobalt. Addressing these concerns will be crucial for the long-term sustainability of the cobalt market.

3. Development of Cobalt-Free or Reduced-Cobalt Batteries
   While cobalt remains a key material in battery technology, ongoing research is focused on developing alternative battery chemistries that either reduce or eliminate the need for cobalt. Technologies such as lithium iron phosphate (LFP) batteries and solid-state batteries offer potential alternatives to traditional lithium-ion batteries. If these technologies achieve widespread adoption, it could slow down the growth of the cobalt market. However, the transition to alternative chemistries will take time, and cobalt will continue to play a significant role in battery technologies for the foreseeable future.

Trends in the Cobalt Market

Several key trends are shaping the future of the cobalt market. These trends are a response to the growing demand for clean energy and sustainable technologies, as well as the ongoing evolution of battery technologies.

1. Focus on Sustainability and Ethical Sourcing
   As the global demand for cobalt rises, there is an increasing focus on ensuring that cobalt is sourced responsibly. Companies and governments are implementing stricter regulations and transparency standards to ensure that cobalt mining operations do not exploit workers or harm the environment. In response to these pressures, many companies are exploring recycling solutions, such as the reprocessing of used batteries to extract cobalt, and sourcing cobalt from more ethical and environmentally sustainable sources.

2. Recycling and Secondary Supply
   Recycling is emerging as a key trend in the cobalt market. As the demand for batteries grows, the amount of used batteries containing cobalt is also increasing. Recycling used batteries to extract cobalt can help reduce the dependence on mining and offer a more sustainable way to meet the growing demand for cobalt. Over time, the share of secondary supply in the cobalt market is expected to increase, which could alleviate some of the supply chain risks and ethical concerns associated with cobalt mining.

3. Innovation in Cobalt-Free or Low-Cobalt Battery Technologies
   As the pressure to reduce cobalt usage in batteries increases, manufacturers are investing in research and development to create new battery chemistries with less reliance on cobalt. These innovations could shift the market landscape in the coming years. However, it is important to note that while alternatives like LFP batteries are growing in popularity, cobalt will likely remain a crucial component in many high-performance battery applications for the foreseeable future.

Segmentation of the Global Cobalt Market

The global cobalt market can be segmented based on application, end-use industry, and region. Below is an overview of these segments:

1. By Application

   • Batteries: The largest and fastest-growing segment, driven by the demand for lithium-ion batteries in electric vehicles, energy storage, and consumer electronics.
   • Alloys: Used in the manufacturing of high-performance alloys, which are used in aerospace, defense, and industrial applications.
   • Catalysts: Cobalt is used in catalysts for petroleum refining and chemical manufacturing.
   • Others: Includes applications in magnets, pigments, and other specialty chemicals.

2. By End-Use Industry

   • Automotive: The demand for cobalt in electric vehicles is growing rapidly.
   • Electronics: Cobalt is used in smartphones, laptops, and other electronic devices.
   • Energy: Energy storage solutions, including grid storage and renewable energy integration, are significant consumers of cobalt.
   • Others: Includes industries such as aerospace, defense, and chemicals.

3. By Region

   • North America: The second-largest market for cobalt, driven by the growth of electric vehicles and renewable energy projects.
   • Europe: A key market for cobalt, particularly in the automotive and electronics sectors.
   • Asia-Pacific: The largest and fastest-growing region, driven by demand from China, Japan, and South Korea, which are major consumers of cobalt in battery manufacturing.
   • Rest of the World: Includes markets in Latin America, Africa, and the Middle East, where cobalt demand is rising due to industrialization and energy projects.

Major Competitors in the Cobalt Market

Several key players dominate the global cobalt market, including:

1. Glencore
   A leading global producer of cobalt, Glencore operates extensive mining and refining operations in the Democratic Republic of Congo (DRC) and other regions.

2. China Molybdenum Co., Ltd.
   A major player in the cobalt market, China Molybdenum is involved in the mining and production of cobalt, primarily sourced from the DRC.

3. China National Petroleum Corporation (CNPC)
   CNPC is one of the largest cobalt producers in the world, with a significant presence in the global supply chain.

4. Eurasian Resources Group
   This company is a key player in the cobalt market, with a strong presence in the mining and trading of cobalt, particularly in the DRC.

5. Umicore
   A global materials technology company, Umicore is a leader in the recycling of cobalt from used batteries and other sources.