Cobalt Market in DRC Faces Temporary Slowdown but Long-Term Prospects Remain Strong
Cobalt, a crucial mineral for the energy transition, experienced a temporary slowdown in 2023, according to a new report from the Cobalt Institute. However, the long-term outlook remains promising due to rising demand for electric vehicles and lithium-ion batteries.
The report highlights that battery-related applications accounted for 73% of cobalt demand, with electric vehicles alone driving 96% of the growth in 2023.
Despite market disruptions and fluctuations, the industry has shown remarkable adaptability and endurance, says Dinah McLeod, Managing Director of the Cobalt Institute.
In 2023, global cobalt supply increased by 17%, while demand grew by 10%. This significant destocking led to falling prices throughout the year, resulting in a market surplus of 14.2 kt, or 7% of the total market.
The report notes that despite the slowdown, the outlook for electric vehicles remains positive, with the cobalt market expected to double by 2030. Battery-related applications are projected to support 95% of this growth.
The Democratic Republic of Congo (DRC) maintained a 76% market share and contributed 78% of the annual supply growth, thanks to mines like Kisanfu and Tenke Fungurume Mining, owned by the Chinese company CMOC.
The Kisanfu mine alone added 32.5 kt to the supply, enabling CMOC to surpass Glencore and become the world’s largest cobalt producer for the first time.
