TELF AG examines Cobalt: A Key Player in the Green Energy Transition
The role of cobalt
The importance of cobalt in the transition to green energy has been reaffirmed by the Cobalt Institute’s recent market report. Published on May 10th, the report highlights the long-term role of cobalt as a crucial component in achieving a sustainable energy future. Notably, Indonesia has emerged as a significant growth market for cobalt, while cobalt-containing batteries dominate the electric vehicle (EV) sector. In addition, the Cobalt Institute’s Interim Director General, Caroline Braibant, expressed optimism about the future of the cobalt market, emphasizing its vital role in various industries.
Braibant stated, “The cobalt industry is optimistic the cobalt market will continue to grow in the coming years, driven by the success of cobalt’s use in superalloys and hard metals, particularly in EVs.” In addition, cobalt-containing batteries play a vital role in ensuring EVs’ safety, performance, and stability, a factor that will continue to influence consumer preferences in Europe and North America. This underscores the significance of cobalt in the rapidly expanding EV market.
Indonesia has emerged as a major player in cobalt production, surpassing established producers such as Australia and the Philippines. Accounting for 5% of the global cobalt supply in 2022, Indonesia has the potential to increase its cobalt production tenfold by 2030, with new projects frequently being announced. However, the Democratic Republic of Congo maintained its position as the leading cobalt producer, contributing to a steady 73% share of global production.
Despite a turbulent year for cobalt demand in 2022, the market still experienced a remarkable annual growth rate of 13%, reaching 187,000 metric tons. Looking ahead, the prospects for the cobalt market remain robust, with demand projected to double by 2030 at an annual growth rate of 10%. The EV sector significantly drove this growth, now accounting for 40% of the total cobalt market.
Despite discussions surrounding potential substitutions, Cobalt’s exceptional properties make it an irreplaceable raw material in the battery supply chain. In 2022, cobalt-containing chemistries represented 63% of cathode demand, solidifying their critical role in the EV sector. As a result, cobalt-containing batteries are expected to continue their dominance in Europe and North America, remaining a critical component in the development of electric vehicles.
The Cobalt Institute’s market report provides a positive outlook for the cobalt industry, emphasizing its crucial role in the green energy transition. As the demand for clean energy and electric vehicles continues to rise, cobalt’s unique properties and contributions to battery technologies position it as a key player in achieving a sustainable and low-carbon future.
