Cobalt Market Size, Share, and Industry Analysis by Application (Automotive, Electronics, Aerospace, Energy, and Others), and Regional Forecast till 2032

The global cobalt market is becoming increasingly significant due to its vital role in industries such as electric vehicle (EV) manufacturing, battery production, aerospace, and electronics. With the rising global demand for EVs and renewable energy solutions, cobalt has emerged as a crucial component in lithium-ion batteries that power these technologies. By improving battery performance and longevity, cobalt plays an essential role in the shift toward cleaner energy. 

• According to India Brand Equity Foundation (IBEF), in 2023, India's electric vehicle (EV) market saw significant growth with USD 255.54 billion sales and is forecasted to reach approximately USD 2,108.80 billion by 2033. This represented a 49.25% increase compared to the previous year, highlighting the rising demand for EVs in the country.
• According to the Ministry of Economy, Trade and Industry, Japan has allocated USD 2.4 billion in subsidies to boost its EV battery production, aiming to raise domestic capacity by 50%. This investment is part of Japan's broader strategy to enhance its battery supply chain and decrease reliance on foreign suppliers.

Cobalt Market Driver

Impact of Electric Vehicle Growth on Cobalt Market

The cobalt market is driven by the increasing demand for electric vehicles (EVs) and renewable energy solutions, which rely on cobalt for lithium-ion batteries. Additionally, its use in aerospace, electronics, and hard metals further fuels product demand. The need for high-performance materials and the push toward cleaner energy sources contribute to the growing market.

• According to the World’s Top Exports, in 2023, the global exports of electric vehicles reached USD 150.6 billion, marking a significant increase of 298.8% from USD 25.9 billion in 2019. This growth reflects the expanding global demand for electricity-powered automobiles.

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The pie chart illustrates the global export share of electric cars by leading countries. Germany dominates with 26.60% of the total export market, showcasing its significant role in electric car manufacturing and distribution. The China follows with 22.70%, leveraging its advanced production capabilities.

Cobalt Market Restraint

Cobalt Industry Struggles with Supply and Ethical Dilemmas

The cobalt market is constrained by supply chain issues, including the concentration of production in a few regions where political instability and poor mining conditions can disrupt supply. Ethical concerns over labor practices, along with price volatility and reliance on limited sources, further hinder market growth and stability. These factors contribute to uncertainty and can affect cobalt's availability in the global market.

• Umicore highlights the challenges in the cobalt market, particularly around sustainability and ethical sourcing. With 65% of cobalt mined in the DRC, issues such as child labor and unsafe conditions in artisanal mining are prevalent.

Cobalt Market Opportunity

Surging EV Demand to Bring New Opportunities for Industry Players

The cobalt market sees a major opportunity in the battery manufacturing sector, fueled by the rising demand for electric vehicles (EVs) and renewable energy storage. As these industries continue to grow, the need for cobalt in lithium-ion batteries increases, providing significant market potential for suppliers and manufacturers.

• According to the World’s Top Exports, in 2023, the U.S. was the top exporter of lithium-ion batteries with an exporting value of USD 577.0 million with a market share of 16.6%.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Regions
• Key Developments: Mergers, Acquisitions, Partnerships
• Latest Technological Advancements
• Insights on Sustainability
• Porters Five Forces Analysis
• Impact of COVID-19 on the Market

Analysis by Application

Based on application, the market is segmented into automotive, electronics, aerospace, energy, and others.

Cobalt plays a key role in the automotive industry, particularly in the production of lithium-ion batteries used in electric vehicles (EVs). Its unique properties improve battery energy density, ensuring longer driving ranges and more reliable performance. As the electric vehicle market grows, the demand for cobalt is also expected to rise, making it a vital component for the future of sustainable transportation. 

• According to the World’s Top Exports, in 2023, Germany ranked as the second-largest importer of electric cars, with imports valued at USD 15.4 billion, accounting for a 10.1% market share.

Regional Analysis

Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The Asia Pacific region, led by China, plays a key role in the cobalt market due to its control over refining and processing, as well as substantial investments in securing cobalt from countries such as the Democratic Republic of Congo. As the demand for cobalt-based technologies such as electric vehicles rises, Asia Pacific's involvement in mining, refining, and battery production solidifies its central position.

Europe stands as the second-leading region in the cobalt market, propelled by its commitment to sustainability and rapid advancements in electric vehicle (EV) production. The region's thriving automotive sector, alongside stringent environmental regulations and clean energy policies, has substantially increased the demand for cobalt, an essential material in lithium-ion batteries.

• According to European Environment Agency, in 2023, EVs gained momentum in Europe, making up 22.7% of new car and 7.7% of new van registrations. The electric car registrations grew to 2.4 million from 2 million in 2022, with BEVs increasing by 37%.

Key Players Covered

The global cobalt market is fragmented with the presence of a large number of group and standalone providers. In the Asia Pacific region, the top three players account for approximately 30% of the market.

The report includes the profiles of the following key players:

• Glencore (Switzerland)
• Umicore (Belgium)
• Vale S.A (Brazil)
• Jinchuan Group International Resources Co. Ltd (China)
• Huayou Cobalt Co., Ltd. (China)
• Jervois Idaho Cobalt (Australia)
• Sherritt International Corporation (Canada)
• BHP (Australia)
• CMOC (China)
• Eurasian Resources Group (Luxembourg)

Key Industry Developments

• In January 2025, Vale and the Royal Commission of Jubail and Yanbu signed a land reservation agreement to create a multi-million-dollar Mega Hub at Ras Al-Khair, Saudi Arabia. This initiative aims to boost Vale's global iron ore production and distribution while supporting the company's commitment to sustainable and efficient mining practices.
• In November 2023, Glencore plc announced a binding agreement to acquire a 77% effective interest in Teck Resources Limited's steelmaking coal business, Elk Valley Resources (EVR), for USD 6.93 billion in cash. This acquisition is positioned as a strategic move to enhance Glencore's existing coal production capabilities, complementing its operations in Australia, Colombia, and South Africa.