The cobalt market is facing another slump, but this time, the dynamics are different. Unlike previous downturns driven by oversupply and weak demand, the current decline is influenced by a combination of technological advancements, shifting supply chains, and evolving consumer preferences.
Cobalt, a key component in lithium-ion batteries used in electric vehicles (EVs) and electronics, has seen its price drop by 30% over the past year. Analysts attribute this decline to increased recycling efforts, the development of cobalt-free batteries, and geopolitical shifts in mining operations.
“This is not just another cyclical downturn,” said Andy Home, a commodities analyst. “The cobalt market is undergoing a structural transformation that could reshape the industry for years to come.”
