Cobalt is a vital strategic metal. The downstream demand for cobalt primarily arises from the battery sector, high-temperature alloys, hard alloys, magnetic materials, etc. According to Antaike statistics, with the growth in global sales of new energy vehicles, the battery sector’s demand for cobalt exceeds 60%.

In 2024, the cobalt market saw an oversupply driven by sustained high output from the DRC, fueled by elevated copper prices as well as ramps in Indonesian MHP (Mixed Hydroxide Precipitate) production. On demand side, 70% of cobalt demand in 2024 came from the battery sector. The combination of subsidies for trade-ins and the launch of new models with additional AI features led to a steady increase in the demand for consumer batteries, while movement of demand from cathode material sector weighed on cobalt price and payable.