The Cobalt Mining Market

We work on ensuring Cobalt demand-supply equilibrium as we move toward electric mobility.

The global electric vehicle market is expanding rapidly. As a result, there will be a significant surge in the demand for cobalt in the next upcoming years. However, the supply of cobalt is not without challenges. With concerns about the concentration of cobalt supply and the risk of future disruptions, experts predict that these issues will continue to pose a challenge in the near future.

Fortunately, there are potential solutions to these concerns. One such solution is mineral exploration, which can help expand the sources of cobalt. Additionally, the recycling of EV batteries can be a game-changer in improving the stability of the cobalt supply. Furthermore, the expected reduction in cobalt usage due to substitution efforts can help reinforce the balance between supply and demand.

In short, while there are challenges related to cobalt supply, there are also promising solutions on the horizon. By investing in minerals exploration, battery recycling, and substitution efforts, we can ensure that the growth of the electric vehicle market is sustainable and environmentally friendly.

The demand for lithium-ion batteries (LIB) is anticipated to surge in the coming years due to the widespread adoption of electric vehicles (EVs), leading to a scarcity of supply. As a result, there is already a global perception that the demand for LIB will surpass the supply, and this loss-making trend is expected to become more frequent from 2025 onwards. However, South America has projected an increase in capacity to meet the growing demand through mining and recycling activities.

The evaluation of cobalt production involves analyzing its worldwide demand and supply, geological settings, and methods of mineral processing. Additionally, the environmental, social, and governance (ESG) risks associated with cobalt production are also taken into account. Cobalt supply is considered high risk due to its extraction as a by-product during copper and nickel production from various types of deposits. This, together with the ESG risks, leads to increased complexity during both the development and operational stages.

The current projection suggests a rise in the worldwide need for cobalt, which will be met with a corresponding boost in production. Nevertheless, the key to ensuring sustainable metal production lies in decreasing the supply vulnerability and addressing the intricate environmental, social, and governance (ESG) issues surrounding presently untapped sources of cobalt. To manage the various risk factors involved in forthcoming cobalt projects, modifications must be implemented in mining operations alongside regulations for artisanal mining and recycling of mine waste streams to obtain cobalt.

Cobalt Trading

Economically significant deposits of cobalt contain various minerals that are rich in cobalt, such as erythrite, skutterudite, cobaltite, carrollite, linnaeite, and asbolite. These minerals belong to different groups of minerals such as arsenides, arsenates, sulphosalts, sulphides, and oxides. Cobalt is usually present in copper and nickel sulphide or oxide ore deposits as a minor component, but it is mostly associated with sulphide minerals of nickel and copper, including pyrrhotite, pentlandite, and chalcopyrite. Cobalt replaces other metals or forms inclusions in these minerals.

Intermediate cobalt products make up over 50% of capacity and production and consist of cobalt salts (such as hydroxide, carbonate, and sulfate), crude cobalt oxide, cobalt alloy blanc, and cobalt-containing mattes. Refined products can be categorized into chemical and metal products, which include cathodes, briquettes, ingots, granules, and powder. To produce pure cobalt metal, one can use a metallurgical process that falls under either hydrometallurgy or pyrometallurgy, individually or in combination. Hydrometallurgical operations are typically used to recover cobalt from copper products.