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Cobalt Prices Crash as EV Demand Declines

1/31/2025

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Summary

Story summary

Cobalt prices have plummeted to over $11 per pound, driven by oversupply from the DRC, which accounts for 80% of global production.
Demand from the EV sector is waning as manufacturers adopt cobalt-free battery technologies like lithium iron phosphate (LFP).
Analysts foresee a grim outlook, predicting further price drops and decreased demand in the near future.

History

Historical Context

Cobalt prices have dropped significantly, reflecting a historical pattern of volatility tied to supply and demand dynamics. In the late 2000s, similar price declines occurred due to oversupply from the DRC, highlighting the ongoing challenges of dependency on a single region for critical minerals, especially amid shifting technologies in battery production.

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Story summary

Cobalt prices have plummeted to over $11 per pound, driven by oversupply from the DRC, which accounts for 80% of global production.
Demand from the EV sector is waning as manufacturers adopt cobalt-free battery technologies like lithium iron phosphate (LFP).
Analysts foresee a grim outlook, predicting further price drops and decreased demand in the near future.

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