[SMM Announcement] New Price Index "SMM Cobalt Metal (In warehouse Rotterdam)"

In June 2024, Australian mining company Latitude 66 announced the discovery of a 2.5-kilometer-long mineralized corridor containing gold, cobalt, and copper in the K6 exploration area of northern Finland. Though still in early-stage exploration, the discovery could have far-reaching implications for Europe’s ongoing efforts to secure critical mineral supply chains. From a resource, geographic, and policy standpoint, the project shows strong potential to become a key contributor to Europe’s green energy transition.

With the rapid development of the global new energy vehicle (NEV) and energy storage sectors, cobalt's strategic importance as a key battery raw material has become increasingly prominent. Recently, Electra Battery Materials, the operator of North America’s only large-scale battery-grade cobalt refinery, has launched preliminary engineering work at its facility in Canada. This marks a significant step toward the localization of the North American cobalt supply chain. This development not only reflects a profound geopolitical restructuring of global supply chains but may also have potential implications for China's dominant position in the global cobalt market and its pricing dynamics.

Cobalt is a critical metal resource that is widely used in various high-tech fields due to its unique physical and chemical properties. As global demand for high-performance materials continues to grow, the strategic importance of cobalt is becoming increasingly prominent. Gaining a deep understanding of cobalt mining, refining, and downstream application value chain helps to grasp its development trends in modern industry and emerging technologies, while also promoting the rational utilization of resources and sustainable development.

The global cobalt market underwent significant changes in 2024 due to the impact of the Democratic Republic of the Congo's (DRC) export ban policy. Shirley, General Manager of SMM's Industry Research, delivered an in-depth analysis at the Global Cobalt Forum hosted by the Cobalt Institute in Singapore, focusing on the dynamics of China's cobalt industry chain, global resource competition landscape, and demand trends. The key points are as follows:

Join the Cobalt Congress – the premier global event that brings together the entire cobalt and critical minerals, value chain, alongside major investors in the sector, to explore the latest developments across market trends, policy, and business.

On February 24, 2025, the Democratic Republic of Congo (DRC), the world's largest cobalt supplier, announced a four-month suspension of cobalt exports to address the persistent decline in cobalt prices due to oversupply in the international market. The policy took effect on February 22 and is scheduled for a three-month review to assess its impact and decide on potential adjustments. Since its announcement, this policy has garnered worldwide attention and ignited enthusiasm in the cobalt product market. According to SMM prices, as of March 14, the prices of all cobalt products have seen significant increases. Specifically, the cumulative price increase for cobalt sulfate, cobalt chloride, and cobalt intermediates has exceeded 80%. Why Did This Ban Attract So Much Attention? .....

In this blog, we touch on the most recent trends in demand for lithium, cobalt, and nickel-what the future might hold for the electric vehicle market in 2025-and go through the latest data from industry leading resources such as SMM for vital price, market condition, and demand forecasts of these metals.

The fluctuating price of cobalt has significant implications for various industries, making it essential to understand the underlying dynamics that affect its value. Below, we delve into the critical aspects that drive the market, specifically focusing on supply and demand and the role of market speculation and investor influence.

Cobalt is a vital component in the production of lithium-ion batteries for electronic devices and electric vehicles (EVs), making it a significant element in the modern economy. The global cobalt market revenue is projected to grow from 39.012 billion USD in 2019 to 53.183 billion USD by 2025, reflecting a compound annual growth rate (CAGR) of 5.3% for the period 2020-2025. This growth is driven by the increasing demand for sustainable energy solutions and the essential role cobalt plays in high-capacity batteries. The cobalt market is influenced by supply and demand dynamics, technological advancements, and economic and political factors. The Democratic Republic of Congo (DRC) is a major contributor to global cobalt production, accounting for about 60% of the supply. Technological progress in battery technology and the rise of EVs have increased reliance on cobalt, thereby driving up its market demand and price. Analyzing historical cobalt price trends and applying forecasting methods are crucial for predicting future prices. Basic forecasting involves examining historical data, while advanced models use machine learning and artificial intelligence (AI) to predict price movements with greater accuracy. Free resources and tools, such as those provided by financial institutions and industry publications, offer valuable market analyses and forecasts. Metal.com, a leading global non-ferrous metal electronic trading platform, offers real-time price information, logistics services, and financial services to facilitate safer and more transparent transactions in the cobalt market. As the demand for cobalt rises, stakeholders must prepare for market volatility and make informed decisions based on a comprehensive understanding of supply dynamics, technological changes, and economic factors.

Cobalt, an important element of modern industry, has a price fluctuation that affects the market. Changes in supply and demand, market expectations, the global economic situation and investor behavior are all key factors affecting the price of cobalt. Unique applications such as batteries, cemented carbide and magnetic materials also have a profound impact on cobalt prices. The SMM website is always committed to providing timely and accurate cobalt market data to help you understand the market dynamics and grasp investment opportunities.