Cobalt Market: Market Size & Forecast 2026

The cobalt market encompasses the mining, refining, and trading of cobalt in various forms, including chemical compounds, pure metal, and recycled scrap. In 2025, the market reached approximately $17 billion in value, supported by first-time annual demand surpassing 200,000 metric tons of cobalt content. Despite structural oversupply weighing on prices in 2024, the medium-term outlook remains anchored to clean energy deployment and industrial applications.

• •Demand surpassed 200,000 metric tons annually for the first time in recent years
• •Structural oversupply and pricing pressure characterized much of 2024
• •Production of cobalt-bearing concentrate from byproduct operations such as the Eagle Mine in Michigan continues to contribute to global supply

The primary catalyst for cobalt market growth is the accelerating adoption of electric vehicles, which rely heavily on cobalt-containing lithium-ion battery chemistries. Renewable energy storage systems and portable electronics further underpin demand, while industrial applications in aerospace and manufacturing provide additional support. Supply-side developments including the expansion of operations such as CMOC's KFM project in the Democratic Republic of Congo have increased available volumes.

• •Electric vehicle battery manufacturing remains the dominant demand driver, accounting for the majority of cobalt consumption
• •Expansion of energy storage systems for renewable power integration is creating incremental demand growth
• •Increased mining output, particularly from the Democratic Republic of Congo, has expanded global supply capacity

The cobalt market is segmented by form into chemical compounds, pure metal, and purchased scrap, with chemical salts representing the largest share for battery manufacturing applications. Geographically, the Democratic Republic of Congo dominates production as home to the world's largest cobalt reserves and major mining operations, while China leads in refining capacity. North America and Europe represent significant consumption regions with growing emphasis on responsible sourcing.

• •The Democratic Republic of Congo supplies the majority of global mined cobalt production
• •China holds dominant refining capacity and processes the bulk of cobalt concentrates globally
• •Demand concentration aligns with electric vehicle manufacturing hubs in Asia, Europe, and North America

What are the recent trends and outlook?

The cobalt market is expected to continue its expansion trajectory at approximately 6.7% annually through 2035, supported by the global energy transition and rising electric vehicle penetration. Industry participants are increasingly focused on supply chain transparency and responsible sourcing amid regulatory and consumer pressure. Technological developments in battery chemistry, including reduced cobalt formulations, may gradually shift demand patterns while total consumption volumes are forecast to continue climbing.

• •Total market volume is projected to reach approximately 994,000 metric tons by 2035
• •Battery chemistry innovation aimed at reducing cobalt intensity poses a structural demand consideration
• •Enhanced supply chain traceability and responsible sourcing standards are becoming increasingly important to downstream users