Cobalt: The Unsung Hero of the Tech Revolution

Introduction

Hello, corporate warriors! Cobalt, once a little-known element, is now a hot topic in the tech world. From smartphones to electric cars, this metal is becoming increasingly crucial. Let's delve into why cobalt is so important and what challenges lie ahead.

The Rise of Lithium-Ion Batteries 🔋

Cobalt may be best known for its vibrant blue pigment, but its most significant application today is in lithium-ion batteries. These batteries power everything from your smartphone to electric vehicles, making cobalt an essential component in our tech-driven lives.

The Price Surge 💰

The average annual price of cobalt more than doubled in 2017 due to strong consumer demand, limited supply, and increased purchases from investors. This price surge has made companies dependent on cobalt scramble to secure their supplies.

The Supply Chain Challenge 🌍

Most cobalt is mined as a byproduct of copper or nickel, making its supply somewhat dependent on the markets for those metals. If miners aren't extracting nickel or copper, they aren't pulling out cobalt either.

The Congo Conundrum 🇨🇩

The Democratic Republic of Congo is the world's leading source of mined cobalt, providing more than half of the global supply. However, much of this mining is unregulated, leading to poor safety, health effects, and even child labor in some cases.

Companies Taking Action 🏭

Apple is reportedly looking to buy cobalt directly from miners to shield itself from possible shortages. Automakers like BMW and Volkswagen are also seeking ways to secure their future cobalt supplies.

China's Dominance 🇨🇳

China is the largest refiner of cobalt and the largest supplier to the United States. About 80% of China's cobalt goes to rechargeable batteries, making it a significant player in the cobalt market.

The Future: Demand vs. Supply 📈

Growth in world refined cobalt demand is expected to outstrip supply, driven mainly by the rechargeable battery and aerospace industries. With our insatiable appetite for technology, it doesn't seem like demand will slow down anytime soon.