We know the EV industry is a key driver for cobalt, with demand increasing during 2021 on the back of higher EV sales that materialized in key regions such as Europe. EVs remain the driving force of the cobalt market.
Cobalt demand is expected to continue to increase causing deficits to emerge in the cobalt market from 2025 onward.
Within the battery market, NCM (“Nickel Manganese Cobalt”) and LFP (“Lithium Iron Phosphate”) chemistries for Li-ion batteries are expected to continue dominating EV applications.
Although LFP type batteries have built market share in China due to the popularity of mini-EV models, the NCM battery will hold ground for longer-range, larger and higher-performance vehicles, making it the preferred choice for the North American market.
As a result, cobalt prices are expected to remain strong off the back of a formidable year that saw its price grow by over 100%.