Global Cobalt Market - 2025-2032

Global cobalt market size reached US$ 17.12 billion in 2024 and is expected to reach US$ 29.86 billion by 2032, growing with a CAGR of 7.20% during the forecast period 2025-2032.

The increasing use of cobalt in superalloys, electric vehicle (EV) batteries, and medical technology is causing a major shift in the worldwide cobalt market. According to the Cobalt Institute, the demand for cobalt showed resiliency in 2022, growing by 13% annually to reach 187 kilotons (kt), and it is expected to quadruple by 2030 at a 10% annual rate.

Since 63% of cathode demand in 2022 came from cobalt-containing lithium-ion chemistries, the element has become essential to the changing supply chain for EV batteries. Cobalt is essential for guaranteeing battery longevity, performance, and safety elements that are crucial to customer demand in North America and Europe.

The cobalt sector is hopeful about further expansion despite obstacles like environmental concerns and geopolitical difficulties. Global production is predicted to approach 300 kt in 2024 after surpassing 200 kt in 2023. Through thorough market reports, the Cobalt Institute promotes accessibility and transparency in the complex supply chain that supports the cobalt market.

Market Trend

Changes in the energy, automotive, and healthcare industries have an impact on the cobalt market. Today, 40% of the world's cobalt demand comes from electric vehicles, making this industry the main engine of development. Cobalt continues to play a critical role in improving battery energy density and durability as lithium-nickel-manganese-cobalt-oxide (NMC) batteries are used in EVs more frequently.

Battery manufacture has been further stimulated by regional policies like the US Inflation Reduction Act, with US$ 52 billion in supply chain investments announced between August 2022 and March 2023. Boeing's ambitions to boost aircraft production by 2026 further demonstrate the growing use of cobalt in aerospace superalloys.

The healthcare industry is also experiencing an increase in demand because cobalt alloys are used in surgical tools and orthopedic implants. In the meantime, a significant change in supply is indicated by Indonesia's rise to the position of second-largest producer of cobalt and its anticipated tenfold expansion by 2030. These patterns highlight how important cobalt is to the world's shift to greener technologies.

Global Cobalt Market Dynamics

Electrification and Environmental Sustainability

The growing emphasis on sustainable mobility worldwide, especially through the electrification of transportation, is the main factor propelling the cobalt market. Cobalt plays a key role in improving the performance, safety, and range of lithium-ion batteries used in e-bikes, power equipment, and electric cars.

Notably, because of their energy density and thermal stability, cobalt-based cathodes-particularly NMC kinds with 10-20% cobalt-are favored. The demand for battery-grade cobalt is rising as a result of government programs like the US Inflation Reduction Act that are speeding up investments in EV infrastructure. Cobalt's significance is further cemented by its use in aerospace superalloys and its biocompatibility in medicinal applications.

Cobalt's essential qualities allow for its continued use in spite of continuous substitute efforts as the globe strives for net-zero goals and sustainable energy transitions. With cobalt usage expected to double by 2030, the material's strong ties to high-growth industries like healthcare, aircraft, and automobiles guarantee that demand will be strong for the remainder of the decade.

Geopolitical and Environmental Hazards

Notwithstanding its encouraging growth trajectory, the cobalt market is confronted with significant geopolitical and environmental obstacles. Environmental concerns center on the Democratic Republic of the Congo (DRC), which holds 50% of the world's cobalt reserves and 74% of its production in 2023.

The nation's tropical rainforests, the second biggest in the world, have seen extensive destruction as a result of mining operations. Environmental organizations and legislators are alarmed by estimates that mining companies have felled millions of trees. The stability of the cobalt supply chain may be threatened by stricter regulations brought on by these environmental problems.

Market risks are being exacerbated by geopolitical concerns. The US has imposed a 25% duty on imported refined cobalt, highlighting the material's vulnerability to trade disputes due to China's dominance in the refining process. With political changes like Donald Trump's continued leadership, more tariff increases are expected. When combined, these elements present serious obstacles to the long-term viability of the cobalt market.

Segment Analysis

The global cobalt market is segmented based on product, end-user and region.

Cobalt Sulfate Leads Market on Rising Lithium Battery Demand

Batteries, cobalt sulfate has become a prominent commodity in the cobalt market, because it is widely used in many important industries, such as agriculture, dyeing, catalysts, and most significantly. It is essential for a variety of electronic products, including laptops, smartphones, and electric vehicles (EVs), due to its crucial role in the production of lithium-ion batteries.

Cobalt sulfate contributes to the increasing need for dependable and durable energy storage options by improving battery performance and lifespan. Investments in the manufacturing of lithium batteries are increasing as a result of the global trend toward electrification and smart technology.

For instance, in August 2024, General Motors Company and Samsung SDI announced a joint venture with a US$ 3.5 billion investment to build a 36 GWh battery manufacturing facility. The demand for cobalt sulfate is anticipated to rise sharply in the upcoming years as a result of these advances, enhancing its standing as a crucial product in the cobalt value chain.

Geographical Penetration

Policy-Driven Expansion of the Cobalt Market in North America

The growing demand for cobalt in the clean energy, high-tech, and healthcare sectors is expected to propel the market in North America. Strong research and development capabilities are likely to support increased consumption of magnetic alloys and medical implants, particularly in the US.

Innovative manufacturing and the aerospace and defense sectors are also expected to have a major impact on cobalt demand because of its special material qualities. Cobalt is also being used increasingly frequently in high-performance magnets and energy infrastructure parts as a result of the region's transition to renewable energy.

North America, and the US in particular, are now major participants in the global cobalt supply chain thanks to aggressive regulatory actions, particularly the Inflation Reduction Act (IRA). After the IRA, half of the US$ 52 billion spent in the region's EV supply chain went toward battery manufacture alone. The US may produce 5% of the world's cobalt by 2030, with production predicted to expand tenfold, indicating its growing strategic significance in this interconnected global market.

US Tariff Analysis

Global markets have expressed stress about the recent US reciprocal tariffs, which were declared by executive order on April 2, 2025; nonetheless, this important industry has experienced some stability because of the specific exemption of critical minerals, such as cobalt. Under its inclusion on the USGS 2022 Critical Minerals List, the US decided to exclude cobalt, as stated in Section 3(b) of the order, which also indicates the nation's reliance on imports to meet local demand.

Applying tariffs would have severely disrupted supply chains, especially in vital industries like EV batteries and defense, since the US imports the majority of its cobalt and produces none locally. Interestingly, imports of cobalt from China, which would normally be subject to a 34% duty beginning on April 9, are untouched.

The exception did not surprise market participants, who pointed out that taxing such a vital input would be impractical. However, there is still uncertainty surrounding Indonesian cobalt, which might be subject to a blanket 10% tax beginning on April 5.

Competitive Landscape

The major global players in the market include China Molybdenum Co., Ltd., Eurasian Resources Group, Freeport-McMoRan, Umicore, Glencore, Sumitomo Metal Mining Co., Ltd., Norilsk Nickel, Huayou Cobalt, Jinchuan Group, and Vale S.A.

Key Developments

• In August 2024, the Pentagon announced a US$ 20 million award to build a cobalt refinery in Canada's Ontario province. Diversifying the cobalt supply chain from China to other nations is a goal of the US government.

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