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. As global sales of new energy vehicles have increased, power batteries have emerged as the primary downstream application for cobalt.

In 2025, MB cobalt metal averaged $16.08/lb, up 42.81% year-on-year. The DRC export ban shifted global cobalt from surplus to structural imbalance, with inventories falling outside the DRC and prices rally sharply.

CRU data shows 2025 global cobalt raw material output at around 270kt, down 3.4%. DRC production fell 10.2% to around 189kt, while Indonesia rose 37.7% to around 46kt. The export ban by the DRC, first imposed in February 2025, imposed continued constraint on export of cobalt intermediates. Smelters in global relied on in-transit and historical stocks, cutting refined output by 6.2% year-on-year to 223kt.

Demand grew 9.1% to around 235kt in 2025 as estimated by CRU, supported by China's EV trade-in program and AI upgrades in consumer electronics.