5G technology to boost demand for cobalt, expected to reach 73,000 tonnes by 2025
According to analysts, 5G technology will be one of the main consumers of cobalt within five years, with demand expected to drop from 45,000 tonnes this year to 73,000 tonnes in 2025, reports Agence Ecofin, which relayed Reuters. 5G could become the number one consumer of cobalt over the years, supplanting the electric vehicle sector which currently occupies the largest share of the global market.
Indeed, the antenna of 5G stations requires rechargeable batteries more powerful, able to accumulate enough energy to allow its operation. In addition, the batteries used in laptops operating with 4G will not be sufficient for antennas receiving 5G, causing a need for more efficient batteries. However, all these batteries are made with lithium and cobalt oxide and there are currently no other alternatives.
“As the global transition to 5G technology accelerates, the growth of non-electric vehicle markets has significant potential to increase on two fronts: laptops and energy storage systems. The growth of energy storage systems has already surpassed that of electric vehicles, although starting from a much lower base and we expect that the demand for stations will increase by 35% annually during the decade ”, estimate analysts of Benchmark Mineral Intelligence.
The DRC is the largest exporter of cobalt in the world and holds 60% of the world’s reserves. Higher demand should lead to higher prices, generating higher revenues for the Congolese state in the coming years, according to analysts’ projections.
