Supply Chain & Raw Materials

Cobalt Is In A Severe Oversupply Situation KEY TRENDS DRC, Indonesia, and China driving oversupply and overcapacity Supply is becoming even more concentrated several Australian and US projects curtailed Cobalt demand diversifying beyond China with new pCAM projects, but mainly in low-risk and low-cost countries like Indonesia

LARGE SURPLUS DRIVEN BY SUPPLY GROWTH Almost all cobalt is mined as a byproduct of nickel or copper. As such, miners are not deterred by low Co prices and will continue production as long as Ni and Cu markets incentivize it. Curtailments are far from being enough to balance the market.

COBALT IS BEING THRIFTED AND SUBSTITUTED Shift to Co-free LFP and improvements to NMC cathode materials are heavily dampening demand for Co in batteries - average Co intensity has dropped by two thirds in five years.

Source: Content & analysis provided courtesy of CRU Group Distinguished Partner). For more information, visit https://www.crugroup.com.

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