Global cobalt production is poised to reach new heights as the Democratic Republic of Congo and Indonesia drive growth, with supply expected to surpass 300kt mark in 2024.
Global Cobalt Supply to Surpass 300kt Mark in 2024
The global cobalt mining industry is expected to witness significant growth in the coming years, driven by increasing demand and substantial investments from both government and private sectors. According to a recent report, global cobalt production surpassed the 200kt mark for the first time in 2023 and is expected to cross the 300kt mark in 2024, posting a substantial 30.7% growth.
The Dominance of DRC and Indonesia
The Democratic Republic of Congo (DRC) remains the dominant player in the global cobalt market, estimated to account for over 80% of the global output in 2024. This is largely due to the country’s rich cobalt reserves and favorable business environment. Indonesia will follow closely, accounting for 6.7% of global cobalt production in 2024.
Growing Demand and Investment
The growth in global cobalt production can be attributed to increasing demand from various industries, including electric vehicle manufacturing, renewable energy, and consumer electronics. Substantial investments from both government and private sectors have also contributed to the growth in the industry. As a result, the number of cobalt-producing countries has doubled from seven in 2000 to 16 in 2024.
Key Players and Projects
Several key players are involved in the global cobalt mining industry, including CMOC Group, Glencore, Jinchuan Group International Resources, Vale, among others. These companies have major active mines, development projects, and exploration projects across various regions. Understanding these players and their activities is crucial for navigating the complex cobalt market.
Cobalt Prices and Trends
Cobalt prices are expected to remain volatile in the coming years due to fluctuations in supply and demand. However, with increasing demand and growing investments, the global cobalt production is expected to grow at a CAGR of 5.1% to reach 410.9kt in 2030.
Demand Drivers
Several factors are affecting the global cobalt industry, including the growth of electric vehicle manufacturing, renewable energy, and consumer electronics. These industries require increasing amounts of cobalt for their production, driving demand for the metal. Additionally, government regulations and policies aimed at reducing carbon emissions are also contributing to the growth in cobalt demand.
Conclusion
The global cobalt supply is expected to surpass 300kt mark in 2024, driven by production from the DRC and Indonesia. Understanding the drivers of this growth, including increasing demand and substantial investments, is crucial for navigating the complex cobalt market.
