Cobalt Prices Firm as EV and Defense Demand Collide
Cobalt, essential for high-performance battery cathodes and defense-grade alloys, is facing renewed supply pressure. While EV manufacturers have sought to reduce cobalt content in battery chemistries, the mineral remains irreplaceable for certain high-density applications and critical defense uses. Global mine output growth is slowing, particularly in the Democratic Republic of Congo (DRC), which accounts for over 70% of mined cobalt.
Key Points:
Glencore forecasts a 5–8% drop in cobalt production from the DRC in 2025 due to grade declines and operational constraints.
https://www.glencore.com/media-and-insights/newsU.S. Department of Defense renewed contracts with U.S. refiners to secure cobalt for jet engine components and defense battery systems.
https://www.defense.gov/News/Contracts/Electra Battery Materials reported progress on its Ontario refinery, which will process cobalt sulfate for EVs and defense customers.
https://electrabmc.com/China’s cobalt refiners are increasing stockpiles in anticipation of possible supply chain disruption.
https://www.reuters.com/markets/commodities/china-cobalt-market-2025-07-30/
Why It Matters:
Strategic Metal – Cobalt’s role in defense alloys and critical electronics keeps it on national security priority lists.
Geopolitical Exposure – Heavy dependence on the DRC for primary supply creates vulnerability to political and logistical disruptions.
North American Leverage – Domestic refining and recycling projects can help close the gap in FEOC-compliant supply for EV and defense sectors.
Watchlist Companies:
Electra Battery Materials – Building North America’s first cobalt sulfate refinery; targeting EV and defense-grade markets.
https://electrabmc.com/Glencore – Major cobalt miner and trader; DRC output trends are key global price signals.
https://www.glencore.com/
Critical Minerals Spotlight:
Cobalt – Stabilizes battery cathodes, especially for high-voltage cells; also used in superalloys for jet engines and gas turbines.
Nickel – Often mined alongside cobalt; demand dynamics are closely linked.
Action Points:
Track North American cobalt refining capacity expansions, especially FEOC-compliant supply sources.
Monitor DRC political and operational developments for early indicators of price shifts.
Evaluate defense-sector demand forecasts alongside EV production schedules for overlapping cobalt needs.
Watch for automaker contract announcements locking in multi-year cobalt supply.
https://444Critical.com
This update is for informational purposes only and is not financial or legal advice. Information is believed accurate but not guaranteed.