Global Cobalt Market Analysis Report, 2022 & 2023-2028 - Congo and Indonesia Dominate the Supply Chain Fueling Battery Tech, Superalloys, and More
DUBLIN, Oct. 13, 2023 /PRNewswire/ -- The "Global Cobalt Market: Analysis By Form (Chemical and Metal), By Mined Supply, By Refined Supply, By Type (Primary and Secondary), By Demand, By Application (Batteries and Non-Batteries), By Region Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
The global cobalt market was valued at US$9.48 billion in 2022. The market value is expected to reach US$17.68 billion by 2028. The global cobalt market mined supply stood at 205.30 kilotonnes in 2022. Whereas, The cobalt market demand is projected to rise to 267.33 kilotonnes by 2028. Cobalt is a hard ferromagnetic, silver-white, hard, lustrous, brittle element. It is a member of group VIII of the periodic table.
Cobalt is an important raw material for the production of battery materials, superalloys, high-temperature alloys, cutting tools, magnetic materials, petrochemical catalysts, pharmaceuticals, and glaze materials. Owing to the benefits provided by the cobalt and the wide applications it serves, the cobalt market has been growing in the past few years.
Moreover, there are several new cobalt projects in development, which are expected to increase the supply of cobalt in the coming years. These projects are located in countries such as Australia, the Democratic Republic of the Congo (DRC), and Morocco.
This would help to meet the growing demand for cobalt and stabilize the price of cobalt, resulting in market growth. The cobalt market is expected to grow at a CAGR of approx. 11.0% over the projected period of 2023-2028.
Market Segmentation Analysis:
The chemical segment takes the lead in market share and is projected to experience the most rapid growth in the forecasted period. This is attributed to the magnetic properties of metallic cobalt, which make it invaluable for crafting high-performance magnets used in electric motors, generators, and various other devices. The escalating use of electric motors and related devices has consequently driven up the demand for metallic cobalt, propelling market expansion.
In 2022, the surge in cobalt production was driven by significant increases in the Democratic Republic of Congo, which accounts for approximately 70% of global supply, as well as Indonesia, an emerging player in this rapidly growing market. Mine production is poised for continuous growth in the coming years, primarily due to further increases in production from Congo and Indonesia.
As various industries, including electronics, renewable energy, and transportation, experience growth and demand for products containing cobalt, producers are intensifying their cobalt refining operations to meet this heightened demand. Simultaneously, improved recycling technologies and growing awareness of resource sustainability are anticipated to boost the recycling of cobalt-containing materials, contributing to an increased refined supply in the years ahead.
While cobalt is present in most portable devices used in daily life, electric vehicles (EVs) surpassed electronics as the major source of demand in 2022. The combination of EV purchase subsidies, part of post-COVID economic stimulus packages in the EU and China, and the pandemic-induced shift in consumer spending patterns significantly accelerated demand for cobalt in EVs in 2020 and 2021. Geographically, Asia, particularly China, Japan, and South Korea, dominates as the largest cobalt-consuming region, reflecting the concentration of battery materials production in Asia.
The battery segment claims the largest share of the market and is forecasted to be the fastest-growing segment in the foreseeable future. This segment is further categorized into Electric Vehicles, Electronics, Energy Storage Systems (ESS), and Power devices & Motive Products.
Countries such as the EU, the US, Japan, and China have consistently raised standards for vehicle fuel economy and greenhouse gas emissions over the past 15 years, incentivizing automotive manufacturers to develop electric alternatives to traditional internal combustion engine designs. Consumer preferences are increasingly shifting toward more environmentally friendly vehicles, leading to a rise in EV sales, thereby supporting cobalt market growth.
The report offers insights into the cobalt market's mined supply based on regions, including Congo (DRC), Indonesia, Russia, Australia, Canada, Cuba, Madagascar, and the Rest of the World. DRC currently holds the largest market share, while Indonesia is poised to be the fastest-growing region in the coming years.
Efforts to regulate and legitimize the artisanal and small-scale mining (ASM) sector in the DRC, including the establishment of a state-owned company to purchase and market all ASM cobalt, as well as industry-driven responsible sourcing initiatives, are expected to enhance transparency and ethical sourcing practices in the cobalt supply chain. This will further bolster the cobalt market's growth in the DRC in the coming years.
Indonesia's increased cobalt production is primarily attributed to four new high-pressure acid leaching (HPAL) facilities that process ore to produce both nickel and cobalt in mixed hydroxide precipitate, which can then be exported. More such facilities are in development, including the US$2.6 billion Sonic Bay nickel-cobalt hydrometallurgical complex, a joint venture between Eramet and BASF. Consequently, the Indonesian region presents lucrative growth opportunities for the cobalt market in the foreseeable future.
Competitive Landscape:
In 2022, Glencore produced 43.80 kilotonnes of cobalt. Also, In 2022, Glencore and General Motors Co. announced a multi-year sourcing agreement in which Glencore would supply GM with cobalt from the company's Murrin Murrin operation in Australia.
Global Market Analysis
Competitive Analysis
- Global Cobalt Market Players by Cobalt Production
- Global Cobalt Market Players: Resources Comparison
- Global Cobalt Market Players: Ore Reserves Comparison
- Global Cobalt Market Players: Operating Mines Comparison
- Global Cobalt Market Players: Developing Mines Comparison
Global Cobalt Market: An Analysis
- Global Cobalt Market by Value
- Global Cobalt Market by Form (Chemical and Metal)
Global Cobalt Market: Form Analysis
- Global Chemical Cobalt Market by Value
- Global Metal Cobalt Market by Value
- Global Cobalt Market: Mined Supply Analysis
- Global Cobalt Market by Mined Supply: An Overview
- Global Cobalt Market by Mined Supply
- Global Cobalt Market Mined Supply by Source (Copper, Nickel, Primary Cobalt, and Others)
- Global Cobalt Market Mined Supply by Region (Congo (DRC), Indonesia, Russia, Australia, Canada, Cuba, Madagascar, and Rest of the World)
Global Cobalt Market: Refined Supply Analysis
- Global Cobalt Market by Refined Supply
- Global Cobalt Market Refined Supply by Type (Primary and Secondary)
- Global Cobalt Market Refined Supply by Form (Chemical and Metal)
- Global Cobalt Market Refined Supply by Region (China, Finland, Canada, Norway, Australia, Madagascar, DRC, Morocco, Russia, and Rest of the World)
Global Cobalt Market Refined Supply: Type Analysis
- Global Cobalt Market by Primary Refined Supply
- Global Cobalt Market by Secondary Refined Supply
Global Cobalt Market: Demand Analysis
- Global Cobalt Market by Demand
- Global Cobalt Market Demand by Application (Batteries and Non-Batteries)
- Global Cobalt Market Demand by Region (Asia Pacific, Europe, North America, Latin America, and Middle East and Africa)
Global Cobalt Market Demand: Application Analysis
- Global Batteries Cobalt Market by Demand
- Global Batteries Cobalt Market Demand by Type (Electric Vehicles, Electronics, Energy Storage System, and Power Devices & Motive Products)
- Global Batteries Cobalt Market Type by Demand
- Global Non-Batteries Cobalt Market by Demand
Global Cobalt Market: Reserve Analysis
Market Dynamics
Growth Drivers
- Escalating Demand for EV Batteries
- Increasing Adoption of Renewable Energy Sources
- Increasing Demand for Consumer Electronics
- Rapid Urbanization
- Increasing Nickel and Copper Production
- Wide Range of Industrial Applications
- Escalating Use in Chemical Industry
Challenges
- Fluctuating Prices
- Resource Scarcity
- Environmental and Ethical Challenges
Market Trends
- Integration of IoT in Cobalt Market
- Increasing Exploration and Development of Cobalt Deposits
- Technological Advancements
- Sustainable Mining Practices
- Increasing Recyclability and the Circular Economy
- Favorable Government Initiatives
- Increasing Green Financing
- Increasing Establishment of Battery Gigafactory
The key players in the global cobalt market are:
- Glencore Plc
- Umicore
- Vale S.A.
- Jinchuan Group International Resources Co. Ltd.
- Zhejiang Huayou Cobalt Co., Ltd.
- Sherritt International Corporation
- BHP Group Limited
- Norilsk Nickel
- Eramet Group
- CMOC Group Limited
For more information about this report visit https://www.researchandmarkets.com/r/agq655
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