Strong Outlook for Cobalt Market: Key Contribution to Net-Zero Targets

Cobalt is an essential element that plays a crucial role in our daily lives. From ceramics to glassware to fighter planes, cobalt is everywhere, even in Rembrandt’s paintings. But its most significant demand comes from batteries for electronic products like electric vehicles (EVs). As we move towards decarbonizing transport, the need for EVs is growing, which means the demand for cobalt is on the rise.

Different batteries offer unique properties, but cobalt-containing batteries stand out for their longer range and higher energy density. While non-cobalt-containing batteries may be cheaper, there’s still a significant demand for cobalt-containing batteries, especially in regions like the US and the EU where range is crucial. With the overall demand for EVs increasing, all battery chemistries will continue to be in demand up to 2050.

According to the Cobalt 2050 study, cobalt demand is set to triple by 2050, driven by the energy transition in industries like passenger EVs, commercial transportation, and consumer electronics. By 2035, it’s estimated that 18% of the demand can be met through recycling, with hopes for this figure to increase further by 2050. These findings are based on a conservative approach, assuming no significant progress is made on net-zero policies.

In Europe, there’s a strong push towards policy development, but there’s a need for regulatory certainty to encourage investment. The lack of long-term regulatory stability makes it challenging for businesses to plan and invest in the sector. Providing risk guarantees and creating a more attractive investment environment could help drive growth in the cobalt industry.

One challenge highlighted is conflicting regulations within different European Commission departments. While some departments focus on economic growth, others set occupational exposure limits that could hinder industry development. Setting occupational exposure limits too low could have severe consequences for the industry without significantly improving worker safety. The message is clear: a balanced regulatory approach is needed to ensure both industry growth and worker safety.