Cobalt Market Report 2023

Cobalt industry grows in 2023: positive outlook despite market weakness

New York, 13 May 2024. The Cobalt Institute Market Report 2023, published at the Cobalt Congress today, shows сobalt market dynamics continued to be shaped by the global shift to EVs, increased supply in the DR Congo and Indonesia, and geopolitical developments. Growing demand for critical minerals ensures the long-term role of cobalt as one of the key elements of the green transition.

Dinah McLeod, Cobalt Institute Director General, said: “The world is now ready to acknowledge the critical role of the cobalt industry for security and economic prosperity. Cobalt is now rightly seen as a linchpin in the transition to a low-carbon economy.”

Cobalt demand reached close to 200 kt for the first time in 2023, with EVs alone are supporting 45% of the market. Despite the slower adoption of EVs, EV sales growth is still strong with a positive outlook. Cobalt will maintain a key role in a number of the major battery chemistries for stability and performance. This mega trend will underpin cobalt’s continued and robust growth.

Mined cobalt supply surpassed 200 kt for the first time in 2023, as CMOC’s Kisanfu mine in DR Congo outperformed all market expectations and Indonesia almost doubled its cobalt output. Overall, the global cobalt market surplus in 2023 increased to 14.2 kt, up substantially from 6.7 kt in 2022. This was the cobalt market’s largest market surplus seen in volume terms.

Cobalt prices continued to decline through 2023, but this decline slowed in 2023 compared to 2022 when prices fell from a high point in the price cycle. Expectations of a surplus in the short term will keep prices subdued but as cobalt demand grows and a supply deficit approaches, prices are expected to recover.

The cobalt market is increasingly intertwined with geopolitics, as major global economies secure access to critical minerals as part of their climate neutrality strategies. Changes in the geopolitical landscape will continue to reshape the market, influencing supply chains, trade dynamics, and investment flows.

The Cobalt Institute’s Cobalt Market Report is the most comprehensive publicly available market overview that gives unique insights on the global cobalt market. The report was developed by Benchmark Minerals Intelligence for the Cobalt Institute.