Cobalt sulphate (min. 20.5% cobalt delivered) entering the EV battery supply chain in China averages 26,500 yuan or $3,655 per tonne in January, down from peaks of over $20,000 and $18,000 a tonne in 2018 and 2022, respectively.
In a recent note, BMO Capital Markets pointed out that in fact real cobalt prices are at the lowest in history based on annual average prices adjusted for inflation going back to the late 1920s using USGS data.
Nearly all cobalt output is a byproduct of nickel and copper mining. Copper production in the Congo is rising fast leading to a near 40% jump in the country’s cobalt output in 2024. The DRC already accounts for 80% of global cobalt supply, estimated to have exceeded 300,000 tonnes in 2024.
Cobalt byproduct output is also increasing in Indonesia, responsible for more than half the world’s nickel supply after years of expansion.
BMO says there is no support to stop prices…
