Cobalt is not found as a free element in nature but in minerals in the earth’s crust. In fact, most of the cobalt mined, particularly in Africa, is seen as a by-product of mining other materials like nickel, copper and silver. Today, cobalt’s status as a by-product is changing.
Pure cobalt is a hard, brittle metal, yet when combined with other metals, forms alloys which are highly resistant to corrosion and high temperatures. For this reason, they are often used in the aerospace industry, for example in rocket motors and space vehicles, and in the energy industry in nuclear reactors and gas turbines. At Matmatch, we see that cobalt-containing materials are also becoming increasingly common for electroplating, industrial catalysts and powerful magnets, as well as being a key component in lithium-ion batteries to power electronic devices and electric vehicles (EVs).
While the total demand for cobalt is expected to reach 120,000 tonnes per annum by 2020, a 30 per cent increase from 2016’s figure, it’s expected that battery consumption will account for 60 per cent of cobalt’s demand. This is a 58 per cent increase on battery demand reported in 2016. The EV market shows no signs of stalling, with more car manufacturers following the lead of Volvo’s ‘all-electric’ initiative. In light of this, more investors have begun seizing the opportunities along the vehicle electrification supply chain and as a result, the demand for lithium-ion batteries has significantly increased.