Cobalt Prices Are Increasing — What Does It Mean for the
The battery industry is facing a new wave of uncertainty as cobalt prices begin to rise, driven largely by geopolitical disruptions and tightening global supply.
The price of cobalt reached a record high of 21,171 USD per ton, marking a significant increase compared to previous years. This metal, essential in the manufacture of lithium-ion batteries, has become a key element in the global energy transition.
Cobalt's key role in a number of the major existing battery chemistries will underpin market performance over this period. Demand is forecast to outpace supply and the market will shift into a deficit in the mid to late 2020s, provid-ing support to cobalt prices.
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.
Current low prices will support cobalt's application in cost competitive sectors such as the bat-tery market but this also risks disincentivising new investment in additional mined and refined capacity to support growing cobalt demand.
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