Enjoy complimentary customisation on priority with our Enterprise License!
The cobalt market size is forecast to increase by USD 8.01 billion at a CAGR of 12.73% between 2023 and 2028. The market is experiencing significant growth due to the increasing adoption of renewable energy sources and the rise of batteries, particularly lithium-ion batteries, in various applications. The electric vehicle industry, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), is a major driver of this market, as cobalt is a key component in the production of lithium-ion batteries. However, the harmful effects of cobalt mining, including environmental concerns and ethical issues, pose challenges to the market's sustainability. Additionally, the increasing demand for energy storage systems in consumer electronics and mobility applications further boosts the market growth. Emissions reduction initiatives and the push for sustainable transportation are also contributing to the market's expansion. Overall, the market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for batteries and energy storage systems.
The market is experiencing significant growth due to its extensive applications in various industries. Cobalt is primarily used in the production of battery raw materials, particularly lithium-ion batteries, which are essential for powering electric vehicles and rechargeable batteries. The evolving electric vehicle industry and the increasing adoption of renewable energy sources are major drivers for the market. Cobalt is also used in the production of cobalt-based superalloys, which are crucial in power generation and aerospace industries for their high thermal stability and ferromagnetic properties. In addition, cobalt is used in the chemical processing industry for the production of cobalt sulfate, a key ingredient in lithium-ion batteries.
Further, cobalt mining and processing are significant activities in the market, with major sources being the Democratic Republic of Congo, Canada, and Russia. The refining process of cobalt involves various stages, including transportation, smelting, and electrolysis, to produce cobalt raw materials and products such as cobalt alloys, high-speed cutting tools, and reycled cobalt. Cobalt is often found in the same ore deposits as copper and nickel, making it a by-product of mining activities in these regions. The market for cobalt is expected to continue growing due to the increasing demand for batteries and alloys in various industries.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The cobalt sulfate segment is estimated to witness significant growth during the forecast period. Cobalt sulfate plays a crucial role in the production of rechargeable batteries, particularly those used in renewable energy storage systems, electric vehicles (BEVs and PHEVs), and consumer electronics. The increasing adoption of sustainable transportation and the shift towards renewable energy sources have fueled the demand for batteries, thereby driving the need for cobalt sulfate. The global market for cobalt sulfate is experiencing significant growth due to the expanding consumer electronics industry, especially in emerging economies.
Additionally, infrastructure projects such as transportation, construction, and urbanization require cobalt sulfate-containing materials for high-strength alloys, coatings, and catalysts. Economic development and urbanization are leading to increased infrastructure investments, further boosting the demand for cobalt sulfate. For instance, on June 30, 2023, Stellantis N.V. And Kuniko Limited announced an offtake term sheet agreement and investment deal, highlighting the ongoing demand for cobalt sulfate in the automotive industry.
Get a glance at the market share of various segments Request Free Sample
The cobalt sulfate segment accounted for USD 4.57 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 68% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions Request Free Sample
The Asia Pacific region, specifically countries including China, Japan, and South Korea, has seen a notable rise in the utilization of Electric Vehicles (BEVs and PHEVs) due to government incentives, environmental consciousness, and technological advancements in batteries, primarily Lithium-ion. The region's industrialization and urbanization have resulted in a growing demand for cobalt in various sectors, such as aerospace, consumer electronics, and construction. Cobalt's application in superalloys for aerospace and in electronic devices like smartphones and laptops is well-known. Additionally, cobalt plays a crucial role in renewable energy technologies, including wind turbines and solar panels, as energy storage systems gain prominence in APAC countries' efforts to meet sustainability objectives and decrease reliance on fossil fuels.
Consequently, the demand for cobalt in these sectors is escalating.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growth of electric vehicle industry is the key driver of the market. The market is primarily driven by the increasing demand for high-strength alloys used in the manufacturing of F-16 fighter jets and other aerospace applications. However, the battery segment holds a significant share in the market, with lithium-ion batteries being the primary consumer due to their widespread use in rechargeable batteries for electric vehicles. The growing trend towards sustainable transportation and stricter emission norms are fueling the demand for electric vehicles, leading to an increased consumption of cobalt. Many countries, including China, India, Norway, France, and the UK, have announced plans to phase out the production and sale of diesel and gasoline cars in the future.
Additionally, the recycling of cobalt from used batteries is also gaining popularity as an alternative source of cobalt, further contributing to the market growth. The refining process of cobalt involves various stages, including smelting, calcination, and hydrometallurgical or pyrometallurgical processes, to produce cobalt products such as cobalt metal, cobalt oxide, and cobalt sulfate. These cobalt products find extensive applications in various industries, including aerospace, automotive, and electronics, apart from rechargeable batteries. High-speed cutting tools and magnetic alloys are some other significant applications of cobalt.
Increasing cobalt mining projects is the upcoming trend in the market. The market is experiencing a significant boost due to the increasing production volumes from new and expanding mining projects. For instance, the Santa Rita nickel-cobalt mine in Bahia, Brazil, is transitioning from open-pit to underground mining in 2028, extending its life from eight to 34 years. This project is anticipated to produce 16,000 tons of nickel equivalent annually after 2028, contributing to the supply of cobalt for various industries. The growing demand for cobalt in sectors such as electric vehicles and renewable energy storage has raised concerns about potential shortages and supply chain constraints. However, the increased supply from mining projects can help alleviate these concerns.
Cobalt is a crucial component in high-strength alloys used in F-16 fighter jets, rechargeable batteries, high-speed cutting tools, and refining processes. Recycled cobalt is also gaining popularity as a sustainable alternative, further increasing the availability of this valuable raw material. Overall, the market is expected to continue growing as the demand for cobalt products increases in various industries.
The harmful effects of cobalt is a key challenge affecting the market growth. Cobalt, a blue-gray metal, is a crucial component in the production of high-strength alloys, notably used in F-16 fighter jets and other advanced technologies. The market encompasses mining, processing, and transportation of this valuable raw material. However, the extraction and use of cobalt come with health and environmental concerns. Cobalt and its compounds can pose toxic risks when ingested, inhaled, or absorbed through the skin. Chronic exposure can result in respiratory issues, heart problems, thyroid dysfunction, neurological disorders, and allergic reactions. Occupational settings like mining and metalworking industries are significant sources of exposure, potentially leading to lung conditions such as hard metal lung disease or cobalt lung.
Additionally, improper disposal or mining runoff can contaminate soil, water, and ecosystems, threatening wildlife and aquatic organisms. The market caters to various industries, including rechargeable batteries, high-speed cutting tools, and refining processes. Recycled cobalt plays an essential role in reducing the environmental impact and health risks associated with primary mining. It is imperative to ensure responsible sourcing, processing, and disposal practices to mitigate the potential hazards.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ambatovy - The company offers cobalt used in different chemical, metallurgical, and industrial products such as high-temperature, wear-resistant super alloys, catalysts, magnetic alloys, electronics, and rechargeable batteries.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is driven by the increasing demand for cobalt-based rechargeable batteries, particularly in the electric vehicle (EV) industry. Cobalt is a strategic metal used in the production of battery chemicals such as cobalt sulfate and cobalt oxide, which are essential components of lithium-ion batteries. The automotive sector, including GM and LG Energy Solution, is a major consumer of these batteries. Cobalt is also used in the production of high-strength alloys, superalloys, and magnetic materials for aerospace applications, including F-16 fighter jets. In power generation, cobalt is used in thermal stability enhancers for renewable energy sources such as windmills and solar energy.
Additionally, cobalt mining and processing involve extracting raw materials from mines, refining the ore, and transporting it to manufacturing plants. The refining process produces cobalt metal, which is used in various industries, including battery manufacturing, industrial chemicals, catalysts, and alloys. The recycling of cobalt from batteries and other sources is becoming increasingly important due to sustainability concerns and the limited availability of cobalt reserves. Cobalt is also used in various other applications, including high-speed cutting tools, electronics exports, and medical devices. The market for cobalt is expected to grow significantly due to the increasing demand for EVs, renewable energy sources, and green technology. The market is also driven by the high thermal stability, energy density, and ferromagnetic properties of cobalt, making it an essential component of various industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.73% |
Market growth 2024-2028 |
USD 8.01 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.23 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 68% |
Key countries |
US, China, Japan, India, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ambatovy, BHP Group plc, China Molybdenum Co. Ltd., COBALT CORP., ELECTRA BATTERY MATERIALS CORP., Eramet, European Cobalt Ltd., Freeport McMoRan Inc., Glencore Plc, Jervois Global Ltd., Missouri Cobalt LLC, MMG Ltd., PJSC MMC Norilsk Nickel, Red Rock Resources plc, Sherritt International Corp., Sumitomo Metal Mining Co. Ltd., Umicore SA, Vale SA, Zhejiang Huayou Cobalt Co. Ltd., and Eurasian Resources Group. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.