Cobalt Market Expected To Reach USD 299.11 kilo tons by 2032, grow at a CAGR of 7.98% from 2025 to 2032

The cobalt market plays a vital role in the global supply chain for advanced materials, especially in batteries, aerospace, and electronics. Cobalt, a hard, lustrous, silver-gray metal, is best known for its use in lithium-ion batteries, which power electric vehicles (EVs), smartphones, and laptops. In recent years, demand for cobalt has surged due to the accelerating shift toward renewable energy and electrification. However, geopolitical risks, supply chain concentration, and ethical sourcing concerns continue to shape the market dynamics.

Cobalt Market size was valued at 151.32 kilo tons in 2024 and the total Global Cobalt Market revenue is expected to grow at a CAGR of 7.98% from 2025 to 2032, reaching nearly USD 299.11 kilo tons by 2032.

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Market Drivers
1. Booming Electric Vehicle (EV) Industry
The primary driver of cobalt demand is the electric vehicle revolution. Cobalt is a key component in the cathodes of lithium-ion batteries, particularly those used in EVs due to its role in improving battery life, energy density, and safety. As automakers race to electrify their fleets and governments set ambitious zero-emission targets, demand for cobalt is expected to rise significantly. Major automotive manufacturers like Tesla, BMW, and Volkswagen rely on cobalt-based battery chemistries for performance and reliability.

2. Energy Storage and Electronics
Beyond EVs, cobalt is essential in portable electronics (smartphones, tablets, laptops) and grid-scale energy storage systems. With renewable energy sources like solar and wind becoming more prevalent, the need for reliable energy storage has grown - further bolstering cobalt demand. The expansion of 5G networks and connected devices also supports cobalt consumption in electronic components.

3. Aerospace and Superalloys
Cobalt is used in high-performance superalloys for turbine blades, jet engines, and gas turbines. These applications require materials that can withstand extreme temperatures and stress. As commercial aviation rebounds and defense spending rises, cobalt's role in the aerospace sector remains critical.

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Market Segmentation
By Application:
Batteries: The largest and fastest-growing segment, accounting for over 50% of global cobalt demand.

Superalloys: Used in aerospace, defense, and industrial applications.

Hard Metals: For cutting tools, mining equipment, and wear-resistant applications.

Ceramics and Pigments: Historically significant but a smaller share of the market today.

By End-Use Industry:
Automotive

Electronics

Aerospace & Defense

Energy and Power

Industrial Manufacturing

By Region:
Asia-Pacific: The dominant region, led by China, which refines over 70% of the world's cobalt. Demand is driven by the EV industry and battery manufacturing.

Europe: Focused on building a self-sufficient battery supply chain and reducing dependence on imported cobalt.

North America: Investing in domestic mining and refining capacities to support energy transition goals.

Key Market Players
Glencore (Switzerland): One of the largest cobalt producers, primarily operating in the Democratic Republic of the Congo (DRC).

China Molybdenum Co., Ltd. (CMOC): A major producer with significant assets in the DRC.

Vale S.A. (Brazil): Produces cobalt as a byproduct of nickel mining.

Eurasian Resources Group (ERG)

Umicore (Belgium): A key player in cobalt recycling and battery materials.

These companies are actively expanding operations, investing in refining capabilities, and working on sustainability initiatives to meet growing demand and regulatory expectations.

Supply Chain Challenges
1. Supply Concentration in the DRC
Over 70% of the world's cobalt is mined in the Democratic Republic of the Congo, a country with political instability, limited infrastructure, and human rights concerns. Artisanal and small-scale mining (ASM) in the DRC has raised ethical issues related to child labor and unsafe working conditions. This concentration of supply poses significant geopolitical and reputational risks for companies dependent on cobalt.

2. Price Volatility
Cobalt prices have been historically volatile, driven by supply disruptions, speculative trading, and demand surges. In 2021-2022, prices spiked due to strong EV sales and supply chain disruptions, but have since moderated. Long-term price trends will depend on how quickly new projects come online and the pace of EV adoption.

3. Recycling and Substitution
Efforts to reduce cobalt content in battery chemistries (e.g., moving from NCM 811 to cobalt-free LFP batteries) and improve cobalt recycling are shaping future demand. While these trends may temper the need for primary cobalt, demand is still expected to remain robust over the next decade due to growth in battery production.

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Sustainability and Ethical Sourcing
As ESG (Environmental, Social, and Governance) concerns gain prominence, there is increasing pressure on companies to ensure responsible sourcing of cobalt. Organizations such as the Cobalt Institute and the Responsible Minerals Initiative (RMI) are working to improve traceability and support ethical mining practices. Companies are also investing in blockchain-based tracking systems to improve transparency in the cobalt supply chain.

Future Outlook
The global cobalt market is poised for strong growth, with forecasts projecting the market to exceed $20 billion by the early 2030s, growing at a CAGR of 6-8% depending on adoption rates for EVs and energy storage. Key trends shaping the market's future include:

Expansion of EV manufacturing globally.

Development of alternative battery chemistries with reduced or no cobalt.

Increased investments in cobalt recycling and circular economy solutions.

Emergence of new mining projects in countries like Australia, Canada, and Indonesia aiming to diversify global supply.

Despite challenges, cobalt remains an essential mineral for the green energy transition. Stakeholders across the value chain are working to secure stable, ethical, and sustainable sources to support the growing global demand.

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