Investment value analysis of cobalt batteries

What is the demand for cobalt batteries?

Comparing cobalt, lithium and nickel (the major battery raw materials) the cobalt mar-ket is expected to see the highest proportion of demand coming from secondary supply. Secondary cobalt is expected to increase from 6% of demand in 2023 to 10% by 2030 and 29% by 2040.

Can battery producers lower the amount of cobalt used?

If battery producers can lower the amount of cobalt used, such other supply sources might ofer possibilities for more significant substitution in the medium term. The rise in demand for EVs, lithium-ion batteries, and the raw materials used to produce them will continue to create rising demand for the production of lithium and cobalt.

Why is cobalt a critical mineral & battery industry?

The critical mineral and battery industries, including cobalt, are increasingly exposed to geopo-litical and supply chain risks. China’s export restrictions on graphite and rare earths have further highlighted the sensitivity of supply chains that are key to the global energy transition.

Is cobalt a good investment for EV batteries?

Cobalt, essential in lithium-ion batteries for EVs finds itself at the intersection of demand and ethical challenges. Gain insights into cobalt investing. This article is part of our series on investing in battery metals. You may also like our comprehensive guide to metals and mining.

How much value is added to cobalt?

Trade data indicate that much of the value added to cobalt occurs between the mining and refining stages. China, the largest importer of unrefined cobalt reported unit values per kilogram from the DRC, the largest exporter, of $1.49 in 2016, $3.37 in 2017, and $4.36 in 2018.

What role does cobalt play in the US battery supply chain?

Cobalt’s role in the growing US battery supply chain and the regional preference for nickel-cobalt battery chemistries will likely be focussed in the midstream and supported by cobalt supply from FTA partners.