The Cobalt Market

The growth in demand for the raw material cobalt is enormous. The current price pressure has come from a slowdown in electric vehicle demand in China. This is due to the Covid 19 closures. However, experts are fairly unanimous that this disruption is only temporary. In the medium term, they therefore expect an attractive demand outlook. This is because the lockdowns will also come to an end in China and supply chains will visibly normalize. Production is currently growing in Indonesia and the Democratic Republic of Congo. Congo is still considered a problematic production country. Last year, cobalt demand increased by more than 18 percent. This was due to the strong market for lithium-ion batteries. This development will also continue due to climate change and the increasing acceptance of electric vehicles and will probably gain even more momentum. In the long term, global demand for cobalt is forecast to grow by around 12 percent per year.

Whether the supply of cobalt can keep pace with the growing demand is still questionable. There are also political and operational risks in the industry. As the Cobalt Institute recently stated, the cobalt market will be in deficit from 2025. Prices will also remain high to incentivize further investment and prevent larger deficits. Cobalt, as an important raw material of the future, is particularly attractive when it does not come from Congo.

This is the case with Canada Nickel Company and its Crawford nickel-cobalt-sulfide project. The project is located in Canada.

There is also cobalt in Finland at Mawson Gold’s – https://www.youtube.com/watch?v=CV7pfLIZadQ – Rajapalot gold-cobalt project.

Current corporate information and press releases from Mawson Gold (- https://www.resource-capital.ch/en/companies/mawson-gold-ltd/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).

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