Cobalt Market Size & Outlook, 2026-2034

Cobalt Market Size

The cobalt market size was valued at USD 18.5 billion in 2025 and is estimated to reach USD 33.1 billion by 2034, growing at a CAGR of 6.6% during the forecast period (2026-2034). Cobalt continues to be a critical part in electric vehicles and energy storage systems, with demand generated from the aerospace & defense sectors too. The cobalt market is projected to expand significantly over the coming decade.

Key Market Insights

• Asia Pacific dominated the global cobalt market with the largest market share of 53% in 2025.
• North America is expected to be the fastest-growing region in the cobalt market during the forecast period, registering a CAGR of 7.6%.
• By product, the recycled cobalt is expected to be the fastest-growing product segment with a CAGR of 12% during the forecast period.
• By end use, the electric vehicle segment is expected to grow at a CAGR of about 8.1% during the forecast period.
• The Chinese cobalt market size was valued at approximately USD 9.4 billion in 2025 and is projected to reach around USD 10.2 billion in 2026.

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Cobalt Market Trends

Shift toward Use of Electric Vehicles

The main component in EVs is the lithium-ion battery, which relies on cobalt for thermal stability and cycle life. The number of EVs is expected to grow in developed and developing countries. EV batteries have a considerably higher amount of cobalt than consumer electronics goods. With strict emission regulations and ICE vehicle phase-out timelines rolled out in various countries, the penetration of EVs is expected to grow over time. This is leading to higher demand for battery-grade cobalt sulphate. Thus, a higher volume of EVs is setting a long-term trend in the market.

Shift toward Domestic Cobalt Production to Reduce Geographical Dependence

Governments worldwide have recognized cobalt as a strategic resource, which is essential for electric vehicles, renewable energy storage, and advanced manufacturing. The rapid use of cobalt has exposed vulnerabilities in global supply chains due to high geographic concentration in mining and refining. In response, the countries are formulating policies to secure long-term access, reduce import dependence, and stabilize domestic industries. For example, the US Inflation Reduction Act (IRA) & Critical Minerals Strategy classify cobalt as a critical mineral essential for clean energy and national security. The government offers tax credits for the domestic production of critical minerals, including cobalt. Australia offers Critical Minerals Tax Incentives, which is a 10% refundable tax offset on eligible processing and refining costs for specified critical minerals. These initiatives are aimed at shifting the geographical focus of cobalt production to diversified areas.

Cobalt Market Drivers

Increasing Investments in Aerospace & Defense Drives Demand for Cobalt-based Superalloys

Cobalt-based superalloys have a direct and immediate demand for cobalt in high-value and high-performance industries. They have unique properties and can function well with extreme heat resistance, superior mechanical strength, and corrosion resistance. This cannot be fully replicated by the other metals. Thus, they have a high demand in defense-critical industries such as aerospace. The aerospace & defense industry is foreseeing investments in the coming time, which is going to impact the demand for cobalt positively. For instance, the US Department of Defense has invested heavily in the next-generation jet engines and missile systems that rely on cobalt superalloys for durability and performance.

Rising ESG and Ethical Sourcing Requirements Driving Cobalt Market Growth

Cobalt mining, particularly in the Democratic Republic of Congo, has faced scrutiny over child labor and unsafe working conditions. Global regulators, investors, and end users demand traceable, responsibly sourced, and ESG-compliant combat, which directly influences the supply chains, pricing, and market access. Cobalt is mined and processed under ESG standards, which often commands a price premium, which makes the producers invest more in mining practices. Non-compliance can result in fines and reputational damage, forcing companies to rapidly adjust sourcing and supplier contracts. The ESG and sourcing requirements directly affect the cobalt market.

Market Restraints

Export Controls and Trade Barriers Limit Cobalt Supply

Cobalt-rich countries, such as the Democratic Republic of Congo, Zambia, and others, have tight control over cobalt exports to protect the domestic industries, manage reserves, and maximize economic benefits. They have faced scrutiny over child labor and unsafe working conditions. Global regulators, investors, and end users demand traceable, responsibly source,d and ESG-compliant combat, which directly influences the supply chains, pricing, and market access. Due to this, there is a lower volume of available cobalt in the international market, which creates bottlenecks in the supply chain. These restrictions lead to sudden price spikes. For instance, in early 2025, DRC suspended all cobalt exports to address oversupply and stabilize prices. In October 2025, the ban was replaced with a quota system, strictly capping the amount of cobalt that can be exported annually. This puts pressure on companies at risk in terms of product manufacturing and development.

Market Opportunities

Recycling Initiatives and Circular Economy Models Creating New Market Opportunities

The global emphasis on sustainability, ESG compliance, and resource efficiency has positioned cobalt recycling as a major growth opportunity in the market. Cobalt is a critical and strategically concentrated resource that can be recovered from lithium-ion batteries, industrial scrap, and electronic waste, which reduces dependency on primary mined cobalt. Recycling of the cobalt market can be a secondary supply source, reduce costs, align with regulatory trends, and support global sustainability goals. Manufacturers worldwide are pushed toward sustainable practices to reduce the environmental impact of manufacturing and use of chemicals. For example, in the UK, a government-backed project led by Mint Innovation and supported by Jaguar Land Rover aims to recover critical minerals like cobalt from used EV batteries, accelerating local recycling capabilities. Recycling also helps with limiting mining activities, which caters to the demand for a sustainable industrial practice worldwide. The EU Batteries Regulation mandates the inclusion of minimum percentages of recycled materials in new industrial, EV, and light-transport batteries. By 2031, this percentage needs to be 16% in the case of recycled cobalt. The Critical Raw Materials Act in this region also seeks to meet 25% of critical minerals through recycling by 2030. National Recycling Initiatives in the US also support the recovery and recycling of critical elements such as cobalt. Thus, recycling initiatives offer lucrative opportunities for market players.

Technological Landscape

• ReSource traces cobalt production with end-to-end visibility from mine processing to refining.
• iTraceiT is a blockchain-powered tracking system that tracks the data movement of critical minerals, such as cobalt.
• W3Mine tracks regulatory data for mineral production and issues digital certificates.

Regional Analysis

The cobalt market in the Asia Pacific had a market share of over 50% in 2025. Asia Pacific leads the lithium-ion battery production, with China and South Korea holding the world’s largest battery and cathode manufacturers. Cobalt plays a crucial role in high-energy-density battery chemistry. Asia Pacific governments actively support domestic supply chains and critical mineral security. The K-Battery Strategy of South Korea focuses on transforming the battery industry into a globally competitive one, covering advanced solutions for EVs and energy storage. The South Korean government has also pledged over USD 29 billion in policy financing through 2028 for the rechargeable battery industry.

China is estimated to grow at a CAGR of 11% over the forecast period. It has the world’s largest EV market, which is driven by government incentives and emission targets. Government incentives provide financial incentives, low-tax loans, and land support. Domestic companies have made a substantial investment in long-term supply contracts, which secure a stable and cost-effective supply of cobalt.

North America

North America accounted for 22% of the global cobalt market share in 2025. The region aims to reduce its dependence on imported battery materials by building local refining and cathode production, which helps in long-term demand growth. Policies such as the US Inflation Reduction Act (IRA) strongly support domestic production of battery and critical mineral supply chains.

The US is expected to have higher growth in the region with a CAGR of 8% during the forecast period. The country is witnessing a growing demand for grid-scale energy storage systems due to renewable sources needing a reliable storage solution for a stable energy supply. Companies such as Fluence Energy and ESS are deploying cobalt-containing lithium-ion batteries to support renewable energy integration.

Europe

Europe represents 20% of the global cobalt market share in 2025. The region emphasizes responsible sourcing and the recycling of cobalt. Programs such as the EU Battery Directive encourage the recovery of cobalt from used batteries, which helps in reducing dependence on imported raw materials. Companies such as Umicore and RecycLio are leading in cobalt recycling.

Germany is experiencing rapid growth in the European region with a CAGR of 9% over the forecast period. The country is focusing on next-generation battery chemistries, which rely on cobalt for high density and stability, while trying to reduce per-unit energy. Companies such as BMW are working on high-performance NCM (nickel-cobalt-manganese) cathodes with lower cobalt content and a high nickel ratio, balancing cost reduction and performance.

Middle East & Africa

The Middle East & Africa region contributes 10% of the global cobalt market share in 2025. In the MEA region, the Democratic Republic of Congo (DRC) is the largest source of the cobalt supply, producing over 70% of the world's cobalt. International companies and investors are entering the region through joint ventures and long-term supply contracts. The regional market growth is indirectly fueled by global EV integration as cobalt from DRC and other countries is exported worldwide for battery production.

The Democratic Republic of the Congo (DRC) is expected to register considerable growth at a CAGR of 7% during the forecast period. The DRC is the leading cobalt producer globally, accounting for more than 70% of the global mined cobalt. The DRC government’s investments in the ports and processing facilities have improved cobalt export efficiency.

Latin America

Latin America represented a 5% share in the cobalt market in 2025. Latin America is experiencing growth due to the new mining projects in countries such as Chile, Peru, and Brazil. For example, Vale's cobalt extraction initiatives in Brazil support domestic production efforts. Latin America is gaining importance as an alternative supply region to diversify the heavy reliance on the Democratic Republic of Congo.

Brazil is expected to grow at a CAGR of 8% in the Latin America region during the forecast period. The demand in this country is fueled by global demand for lithium-ion batteries, which is expected to grow significantly over the next decade. Brazilian authorities are supporting cobalt production through investment-friendly regulations, tax incentives, and mining permits.

Product Insights

The cobalt sulphate segment accounted for the largest cobalt market share in 2025. Cobalt sulphate has the largest share due to its extensive use as a material in the lithium-ion battery cathodes, mostly in MNC and NCA chemistries, for electric vehicles and energy storage systems. The rapid growth of EV battery manufacturing, especially in the Asia Pacific and Europe, has reinforced the demand for battery-grade cobalt sulphate.

The recycled cobalt segment is expected to grow at a CAGR of 12% during the forecast period. The growth is driven by rising ESG compliance requirements and government support for the economic initiatives. Advancements in hydrometallurgical and closed-loop recycling technologies are enabling high-purity cobalt recovery at a competitive cost, making it an alternative to a mined supply.

End Use Insights

The Electric vehicle (EV) batteries segment was the dominant end-use segment in the cobalt market in 2025. This segment is driven by growth in the electric vehicle industry, which still uses cobalt-containing NMC and NDA battery chemistries for higher density and stability. Automotive manufacturers and energy storage developers scale production to meet climate goals and government mandates.

Stationary energy storage systems (ESS) represent the fastest-growing end-use segment, projected to expand at a CAGR of 18% during the forecast period. This growth can be attributed to the expansion of renewable energy sources such as solar and wind, which require battery storage to manage intermittency and grid stability. Cobalt, which contains lithium-ion batteries, is widely used in high-performance storage applications.

Figure: Cobalt Market Segments

Regulatory Bodies Governing the Cobalt Market

Competitive Landscape

The cobalt market is moderately fragmented with competition among multinational mining corporations, battery material producers, and regional cobalt refiners. Large mining companies compete on long-term supply contracts, production capacity, and technological efficiency, while the regional competitors compete with cost-effectiveness, mining operations, and strategic partnerships with battery manufacturers. The intensity of the competition is influenced by factors such as resource control, sustainability, ESG compliance, and supply chain integration. Emerging trends in the market include the expansion of EV and storage markets and increased investments in battery recycling and refining technologies.

List of Key and Emerging Players in Cobalt Market

1. Glencore
2. CMOC Group
3. Huayou Cobalt
4. Eurasian Resources Group (ERG)
5. Umicore 
6. Sumitomo Metal Mining
7. Norilsk Nickel
8. BHP Group
9. Ivanhoe Mines
10. Zhejiang Huayou Cobalt
11. Gem Co. Ltd
12. Jinchuan Group
13. Cobalt Blue Holdings
14. First Cobalt Corporation
15. Jervois Global
16. Ardea Resources
17. Lancaster Resources
18. Euro Manganese
19. St George Mining
20. Tsingshan Holding

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Latest News on Key and Emerging Players

Source: Secondary Research