:format(auto):focal(center))
Glossary | Cobalt
What is Cobalt ?
:format(auto):focal(center))
Cobalt (Co, atomic number 27) is a transition metal widely used in lithium-ion batteries, particularly in electric vehicles (EVs) and energy storage systems. Its electrochemical stability, heat resistance, and magnetic properties make it essential for high-performance battery applications.
Few materials are as critical to the energy transition as cobalt. Limited in supply, geopolitically sensitive, and integral to the battery value chain, it remains firmly in focus for policymakers, automakers, and financial markets alike.
Governments and manufacturers are prioritising transparent, traceable, and responsibly produced cobalt as part of broader decarbonisation and industrial strategies.
Cobalt fundamentals
Understanding cobalt means understanding both its chemistry and its strategic importance within the global battery supply chain.
Cobalt properties
Cobalt is a hard, silvery-grey transition metal with strong resistance to corrosion, and wear. Its magnetic characteristics and electrochemical stability make it particularly valuable in lithium-ion batteries and industrial applications requiring high performance under extreme conditions.
In lithium-ion batteries, cobalt is used within the cathode the positive electrode of the cell. It helps stabilise cathode structures, improve energy density, and extend performance across repeated charging cycles. Cobalt also contributes to battery safety and thermal stability.
Supply chain, trade forms, and strategic importance
Most cobalt is not mined as a primary product but recovered as a by-product of copper and nickel operations, tying its supply closely to the economics of those two base metals.
Cobalt is traded mainly as:
Refined metal
Cobalt metal is used primarily in aerospace alloys and magnetic materials, while cobalt sulphate is the key intermediate in the production of precursor materials for lithium ion battery cathodes. Cobalt hydroxide is the main material exported from the DRC to China for refining into cobalt sulphate, which then feeds the global battery supply chain.
Cobalt supply chain: concentration and risks
:format(auto):focal(center))
The cobalt supply chain is highly concentrated geographically in the DRC, creating significant implications for supply security, pricing, and geopolitics.
DRC dominates global supply with c. 71% of global mined cobalt supply originating in the DRC and northern Zambia. Cobalt is largely produced as a by-product of copper mining operations, with major producers including Glencore, CMOC and ERG.
These companies operate large integrated mines that supply the global battery sector with cobalt hydroxide and other intermediate products.
From DRC mines to Chinese refineries
After extraction, most Congolese cobalt is exported as semi‑processed hydroxide to China, which controls ~70% of global refining capacity. Chinese refiners convert this feedstock into cobalt sulphate and other battery‑grade chemicals, integrating them into cathode materials used across electric vehicle (EV) supply chains. This downstream dominance gives China a pivotal position in the battery industry, influencing global pricing and availability of refined cobalt products.
Indonesia as an emerging secondary supplier
Indonesia has also emerged as a growing secondary source of cobalt, derived from its expanding nickel laterite operations. The country's integrated high‑pressure acid leach (HPAL) projects, primarily designed to produce nickel intermediates for battery precursors, also generate cobalt as a by‑product.
Indonesia's share of global output is expected to rise steadily through the late 2020s as new plants come online, reducing but not eliminating dependence on Congolese supply. However, uncertainties remain around the environmental footprint of HPAL processing and their ability to meet growing global demand.
Efforts to diversify supply in western countries
Western countries currently have limited cobalt mining and refining capabilities. Projects are underway in Australia, Canada, Morocco and Finland alongside refining capacity development in Europe and North America aim to diversify future supply.
What is cobalt used for in batteries?
:format(auto):focal(center))
Cobalt has long been valued in lithium-ion batteries for its ability to stabilise cathode structures, improve energy density, and reduce the risk of thermal runaway. However, as electric vehicle (EV) production accelerates and sustainability pressures increase, manufacturers are steadily lowering cobalt intensity in battery chemistries to cut costs, mitigate supply risk, and address sourcing concerns.
Evolution of NCM chemistries
The evolution of nickel cobalt manganese (NCM) chemistries illustrates this trend. Early NCM 111 batteries used equal parts of each metal, giving cobalt a substantial share of the cathode.
Advances in material engineering have enabled producers to increase nickel content progressing through NCM 622 and NCM 811 formulations where higher nickel levels deliver greater energy density while cobalt content declines significantly.
This enables longer vehicle ranges without compromising safety or performance, although it can raise challenges around stability and lifespan.
Trends in NCA battery development
Nickel cobalt aluminium (NCA) batteries, employed by several leading EV manufacturers, have followed a similar path. Modern variants contain only ~5%–10% cobalt, relying more heavily on nickel for energy density and efficiency. While cobalt continues to provide structural and thermal stability, ongoing research focuses on reducing its proportion further.
Rise of cobalt-free alternatives (LFP)
At the same time, cobalt‑free alternatives such as lithium iron phosphate (LFP) are gaining market share, particularly in:
Mass‑market EVs
Stationary battery energy storage systems (BESS)
LFP batteries offer lower cost and strong thermal safety, though with lower energy density. Their rapid adoption especially in China presents a long‑term competitive challenge to cobalt‑bearing cathodes, yet high‑performance applications continue to depend on cobalt's stabilising properties.
Shifting demand from consumer electronics
Consumer electronics, once a major end‑use for cobalt, now represent a smaller share of total demand as EV production dominates. Premium smartphones and laptops, however, still rely on cobalt‑based cells for reliable, high‑capacity performance.
Future outlook: balancing demand and sustainability
Despite ongoing diversification, cobalt remains indispensable for premium and long‑range EVs. Through the 2030s, these applications are expected to sustain significant cobalt demand even as average intensity per kilowatt hour declines. The industry's challenge is to balance innovation, performance, and responsible sourcing maintaining cobalt's critical role in advanced batteries while transitioning towards a more efficient and sustainable materials mix.
Cobalt prices: market dynamics
:format(auto):focal(center))
Recent price volatility and market correction
Cobalt prices have seen pronounced volatility in recent years, reflecting shifting fundamentals across the electric vehicle (EV) and battery supply chains. After a strong rally in 2021–2022 when supply constraints and rapid EV growth pushed cobalt metal prices to nearly US$90,000/t the market entered a severe correction through 2023–2025.
Rapid output growth from the Democratic Republic of the Congo (DRC), together with weaker‑than‑expected EV demand and inventory build‑ups in China, caused prices to fall to less than one‑third of their 2022 peak.
Supply-side policies and pricing mechanisms
In 2025, the introduction of an export ban and subsequent quota system in the DRC provided renewed price support. The policy was designed to encourage downstream capacity development within the country but, given current refining limitations, has tightened global supply and driven a sharp price recovery.
Benchmark's IOSCO‑assured price assessments for cobalt hydroxide, metal, and sulphate serve as key market references:
Cobalt hydroxide, the dominant export product from the DRC to China, remains the most sensitive to supply-chain disruption
Cobalt sulphate prices closely follow short-term changes in Chinese battery precursor demand.
Refined cobalt metal, used mainly in aerospace and industrial applications, acts as a barometer of broader market sentiment. Futures contracts based on Benchmark's cobalt hydroxide price are now traded on the Intercontinental Exchange (ICE), allowing participants to manage price exposure through hedging strategies.
Demand trends
The growing use of cobalt‑free lithium iron phosphate (LFP) batteries has slowed demand for cobalt‑based chemistries, while swings in EV sales and gigafactory utilisation have increased short‑term volatility. Limited visibility into supply chain inventories also continues to obscure the market, adding to price fluctuations.
The combination of concentrated supply, evolving battery technologies, and policy shifts particularly in the DRC suggests cobalt will remain one of the most volatile and closely watched commodities in the energy transition.
Read More About Cobalt
:format(auto):focal(center))
SourceBattery raw material prices on the rise again after overbuying wiped out 2021–23 gains
29 May 2026 · Daisy Jennings-Gray
:format(auto):focal(center))
SourceWhat the sulphuric acid supply crunch means for critical minerals
28 May 2026
:format(auto):focal(center))
SourceCobalt market anchored by hidden inventories despite supply risks
22 May 2026 · George Ingall
:format(auto):focal(center))
:format(auto):focal(center))
:format(auto):focal(center))
General FAQs
Everything you need to know about Cobalt and how it works. If you'd like to learn more about our Cobalt service:
Contact UsHow is cobalt sourced responsibly?
How is cobalt sourced responsibly?
Efforts to improve cobalt sourcing focus on reducing risks such as unsafe working conditions, environmental damage, and the use of informal or unregulated mining practices. Companies are adopting measures including third‑party audits, traceability systems, and participation in initiatives such as the Responsible Minerals Initiative (RMI) and the Fair Cobalt Alliance (FCA).
Regulatory scrutiny is also increasing in the EU, US, and other markets, with manufacturers expected to demonstrate greater oversight of their supply chains from mine to battery production. While progress is being made, transparency and standards continue to evolve across the cobalt value chain.