Cobalt: A Review of the Current State of the Global Supply Chain

This report assesses the recent trends in the global cobalt market, production, and trade. Cobalt is a critical mineral used in the production of batteries for electric vehicles (EVs) and portable electronics, superalloys used in applications such as commercial and military aircraft engines, and other applications (e.g., samarium-cobalt magnets used in commercial and military applications). Cobalt demand significantly increased in recent years, driven primarily by rising EV demand, though demand growth has been moderated by a shift in EV battery chemistries. While the Democratic Republic of the Congo (DRC) is the primary source of mined cobalt, China continues to dominate the supply chain through mine ownership, refining, and exports of downstream products. Chinese companies have also increased their investments in cobalt mining and refining capacity and output, with support from the Chinese government, which has contributed to lower global cobalt prices and extended their lead in mining and refining. Most U.S. cobalt imports are mattes, powders, and other intermediate products of cobalt metallurgy from Norway, Canada, Japan, and Madagascar. However, the United States also imports a significant volume of cobalt in downstream products such as batteries and magnets, with China the leading supplier of many of these products.