The rise of electric vehicles and their growing demand for battery-generated power
is dramatically altering the market for a key component of these vehicles, cobalt.
According to a new report published by CRU Research, the usage of cobalt in
batteries for EVs will surpass that of phones as the primary driver behind demand
for this material by 2024. This shift has been spurred on in large part by the rapid
adoption of electric cars, which now make up 30% of all new car sales in the United
States. The growth of EV adoption has also helped accelerate demand for cobalt,
which is used in their lithium ion batteries. As more consumer electronics
companies begin producing handsets with smaller batteries, they are also
increasing their demand for cobalt as well.
EV Growth is Driving Up Demand for Cobalt
The usage of lithium ion batteries has accelerated exponentially in the last decade,
and the adoption of electric cars has been a key driver behind this growth. Once a
novelty, EV sales have nearly doubled in the last four years alone. By 2024, EV sales
are expected to be 5x the size they are today, driving up the demand for cobalt
even further. Cobalt is an essential mineral that is used in the production of lithium
ion batteries. These batteries are the key component in all electric vehicles and also
have a wide range of other uses, including electric airplanes, medical equipment,
and renewable energy systems. The increasing popularity of EVs is placing a greater
demand on lithium ion batteries, which is driving up the demand for more cobalt.
Consumer Electronics Upcoming Demand Drivers
The growing use of electric vehicles is the primary driver behind the demand for
cobalt. However, this increase in EV demand is being further bolstered by the
increasing demand for cobalt in the production of consumer electronics. As the
electronics industry moves away from traditional silicon-based materials, such as
silicon and polysilicon, a growing number of manufacturers are turning to newer and
more expensive materials, including cobalt. The demand for cobalt in this segment
has been further boosted by the increasing demand for batteries in the smart home,
which is an emerging market.
Battery Manufacturing is the New hot Spot for Cobalt
Cobalt is used in a variety of industrial applications, such as batteries for industrial
applications, wind turbines, and electric vehicles. However, the increasing demand
for EV batteries has been the primary driver behind the increased demand for
cobalt in batteries. Furthermore, the supply of cobalt is relatively limited and is
projected to increase in the near future, which is further fueling the demand for this
material.
Smartphone OEMs Increasing Demand for Cobalt
Like other mobile device companies, smartphone manufacturers have also been
rapidly ramping up their adoption of electric vehicles. This has pushed up the
demand for cobalt in the production of batteries. In fact, smartphone companies are
now the leading driver of future demand for cobalt, accounting for over 65% of
future demand.
Key Takeaway
The demand for cobalt will continue to rise, driven primarily by the growing demand
for EV batteries, consumer electronics, and the production of smartphone batteries.
By 2024, the usage of cobalt in EV batteries will exceed that of phones as the top
driver behind demand. The growing use of consumer electronics, including
smartphones and other devices powered by lithium ion batteries, will also place
increased demand for cobalt, especially in the production of batteries. The cobalt
supply is also expected to grow, which will cause the price of this element to rise
even further. The article above provides a high-level overview of the potential
future demand for cobalt. As the demand for EV batteries increases, the demand for
cobalt used in EV batteries will also rise. The same goes for the demand for cobalt
in the production of smartphones and other consumer electronics.
Reference:
Electric Vehicles surpass phones as top driver of cobalt demand
(mining.com – May 17, 2022 – https://bit.ly/3mf3sYf)
