Cobalt Oxide Market Trends

Growing popularity of electric vehicles

The escalating demand for electric vehicles (EVs) is one of the most significant trends influencing the Cobalt Oxide Market. As governments and consumers increasingly prioritize sustainable transportation solutions to combat climate change and reduce air pollution, the adoption of EVs has soared. This trend is supported by advancements in battery technology, which have improved vehicle performance, range, and affordability, making electric vehicles more attractive to a broader audience.

Consequently, as the number of EVs on the road rises, so does the volume of lithium-ion batteries reaching the end of their lifecycle, creating a pressing need for efficient and effective recycling solutions.Overall, the increasing demand for EVs is not only reshaping the automotive landscape but also catalyzing growth and innovation in the cobalt oxide market. Rising EV battery demand is the greatest contributor to increasing demand for critical metals like cobalt. Demand for EV batteries reached more than 750 GWh in 2023, up 40% relative to 2022. Electric cars account for 95% of this growth.

Globally, 95% of the growth in battery demand related to EVs was a result of higher EV sales.The rising demand for EV batteries significantly boosts the Cobalt Oxide Market. As EV sales surge, the volume of batteries increases, creating a pressing need for metals like lithium, cobalt, and nickel.As global sales of electric vehicles increase—projected to reach millions in the coming years—the need for batteries, which power these vehicles, expands correspondingly. LIBs are currently the most suitable batteries for EV applications.

Consequently, the demand for LIBs has increased dramatically, which jumped from 185 GWh in 2020 to 685 GWh in 2024 and will exceed 2035 GWh by 2030, according to the statistical data from Statista. In 2023, the installed battery cell manufacturing capacity was up by more than 45% in both China and the United States relative to 2022, and by nearly 25% in Europe. If current trends continue, backed by policies like the US IRA, by the end of 2024, capacity in the United States will be greater than in Europe.

The demand from battery manufacturers is continuously boosting the demand for cobalt and hence driving the overall Cobalt Oxide Market.

Rising demand for cobalt From Non-Battery Application

Super alloys demand experienced continued recovery in 2023 as the aerospace market performed well as the industry returns to normal following the Covid-19 pandemic. International air traffic rose by 42% and domestic traffic by 30% in 2023. Boeing and Airbus both saw improved demand, with commercial aircraft deliveries rising by 10% and 11% y/y in 2023, respectively. Airbus’ order book rose by 23% y/y and they reported strong demand from airlines to refresh fleets, with industry demand recovering faster than their expectations post-pandemic.

They are targeting 800 deliveries in 2024 (+9%) although this still remains below their 2019 peak of 870 units. Super alloys demand experienced continued recovery in 2023 as the aerospace market performed well as the industry returns to normal following the Covid-19 pandemic. International air traffic rose by 42% and domestic traffic by 30% in 2023. Boeing and Airbus both saw improved demand, with commercial aircraft deliveries rising by 10% and 11% y/y in 2023, respectively.

Airbus’ order book rose by 23% y/y and they reported strong demand from airlines to refresh fleets, with industry demand recovering faster than their expectations post-pandemic. They are targeting 800 deliveries in 2024 (+9%) although this still remains below their 2019 peak of 870 units.

The increasing adoption of electric vehicles (EVs) is a primary driver of the Global Cobalt Oxide Market Industry. Cobalt oxide is a crucial component in lithium-ion batteries, which power these vehicles. As governments worldwide implement stricter emissions regulations and promote sustainable transportation, the demand for EVs is projected to surge. In 2024, the market is valued at 5.17 USD Billion, reflecting the growing interest in clean energy solutions. By 2035, the market could reach 10.0 USD Billion, indicating a robust growth trajectory. This trend suggests that the Global Cobalt Oxide Market Industry will play a pivotal role in the transition to greener technologies.

The Global Cobalt Oxide Market Industry is characterized by various trends and growth projections that indicate a promising future. The market is expected to experience a steady increase in demand, driven by factors such as the rise of electric vehicles, advancements in battery technology, and the expansion of renewable energy storage solutions. The anticipated CAGR of 6.18% from 2025 to 2035 highlights the market's resilience and adaptability. Visual representations of these trends, including charts and graphs, can provide valuable insights into the market dynamics and facilitate better understanding of the growth potential in the cobalt oxide sector.

The proliferation of consumer electronics is another significant driver of the Global Cobalt Oxide Market Industry. Cobalt oxide is widely used in rechargeable batteries for devices such as smartphones, laptops, and tablets. As the consumer electronics market continues to expand, driven by technological advancements and increasing disposable incomes, the demand for cobalt oxide is expected to rise correspondingly. This growth is reflected in the anticipated CAGR of 6.18% from 2025 to 2035, suggesting a robust market environment. The reliance on cobalt oxide in powering portable devices emphasizes its critical role in the ongoing digital transformation.

The shift towards renewable energy sources is driving the need for effective energy storage solutions, thereby impacting the Global Cobalt Oxide Market Industry. Cobalt oxide is utilized in batteries that store energy generated from solar and wind sources. As countries aim to reduce their carbon footprints, the demand for reliable energy storage systems is expected to rise. This trend aligns with the projected market growth, with a valuation of 5.17 USD Billion in 2024 and a potential increase to 10.0 USD Billion by 2035. The integration of cobalt oxide in energy storage solutions is likely to be a key factor in achieving energy sustainability goals globally.

Regulatory frameworks promoting the use of sustainable materials are influencing the Global Cobalt Oxide Market Industry. Governments are increasingly encouraging the adoption of environmentally friendly materials in various industries, including automotive and electronics. This regulatory support may lead to heightened demand for cobalt oxide, as it is considered a sustainable option for battery production. The market's growth potential is underscored by the projected increase from 5.17 USD Billion in 2024 to 10.0 USD Billion by 2035. As regulations evolve, the emphasis on sustainable materials is likely to shape the future landscape of the cobalt oxide market.

Innovations in battery technology are significantly influencing the Global Cobalt Oxide Market Industry. Advances such as improved battery chemistry and manufacturing processes enhance the efficiency and performance of cobalt oxide in energy storage solutions. These developments may lead to reduced production costs and increased battery lifespan, thereby attracting more investments in cobalt oxide applications. As the market evolves, the anticipated compound annual growth rate (CAGR) of 6.18% from 2025 to 2035 indicates a sustained interest in optimizing battery technologies. This evolution underscores the importance of cobalt oxide in meeting the energy demands of various sectors, including consumer electronics and renewable energy.

The Cobalt Oxide Market is characterized by the presence of many global, regional, and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. Intense competition, frequent changes in government policies, and regulations are key factors that impact market growth. The vendors compete based on cost, product quality, reliability, and aftermarket services. The top 10 key players in the market includes Umicore, Zhejiang Huayou Cobalt Co. Ltd, Sajan Overseas Pvt Ltd, American Elements, Jervois Finland, Particular Materials, ICoNiChem, Eastmen Chemicals, Shanghai Greenearth Chemicals Co.Ltd., and Sun Industries.

The competitive landscape in cobalt oxide is expected to be strong further in the coming years. The market is expanding due to multiple factors. These are the rise in demand in the electronics sector for the manufacture of Li-ion batteries extensively used in electronic appliances like laptops, mobile, and car cobalt, an application of cobalt oxide is now. The demand for renewable energy is on the rise, and hence cobalt oxide is being used in the health sector. The automotive companies also need to go for electric vehicles. Hence, the demands for the manufacturing of the battery are now.

Cobalt oxide demand in paints and ceramics is required for projects to build infrastructure in many less developed nations.

Umicore: Umicore was founded in 1989 in Belgium & is a leading circular materials technology company with an expertise in the fields of material science, chemistry and metallurgy. It is focused on sustainability to produce and recycle materials. The company works in order to reduce harmful vehicle emissions and recycle used metals. It operates in various industries such as Energy, Automotive, Recycling, Chemicals, Manufacturing, Optics & Display, Precious Metals and Electronics.

It is a leading supplier of catalysts for emission control systems in vehicles and industrial applications, produces a wide range of other materials like specialty chemicals, pigments, alloys & is involved in production of materials for rechargeable batteries which are needed for electrification of transportation and energy storage. It specializes in recycling of precious metals such as gold, silver, platinum as well as metals like cobalt and copper for the purpose of reducing environmental impact.

American Elements: American Elements founded in 1998 is a manufacturer of engineered and advanced materials essential to numerous industries, including green technology, space exploration, nanotechnology, advanced electronics, and military technology with offices in Los Angeles, California; Salt Lake City, Utah; Baotou, China; Monterrey, Mexico, and Manchester, UK. The company has been a focused-on advancement and new product development for over two decades.

Its expertise is in the properties, applications, and cost-effective manufacturing of advanced and engineered materials with its clients being global manufacturers (including over 30% of the Fortune 50), all U.S. and many foreign national laboratories, universities throughout the world, and with thousands of commercial customers in a wide variety of industry groups, including energy, electronics, aerospace, defense, automotive, optics/photovoltaics, green technologies and pharma/cosmetics.

The company provides both technical guidance and manufactured products in its over 12,000 page online catalog which includes over 3,000 elemental metal, chemical, ceramic and crystalline stock items &  also produces numerous customer proprietary formulations from its network of production facilities strategically placed throughout the world.

Cobalt Oxide Market Industry Developments

10 October 2024 Novonix, a leading battery materials and technology company, and ICoNiChem Widnes, a world leader in the production and commercialisation of cobalt and nickel salts based in the UK, have announced the signing of a joint collaboration agreement focused on the development of nickel-based cathode active materials. Novonix and ICoNiChem have been selected for funding under the 2024 Canada-UK critical minerals call for proposals, which is focused on advancing projects related to critical minerals essential for industries like renewable energy, electric vehicles, and electronics.

To support their participation in the project, Novonix Battery Technology Solutions Inc., a Canadian division of Novonix, is receiving advisory services and up to $138,910 (USD 93,306) in funding from the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP), while ICoNiChem is receiving support through Innovate UK. The two-year project, with a total budget of $559,983 between Novonix and ICoNiChem, aims to further improve the sustainability of the Novonix all-dry, zero-waste technology by incorporating recycled metal feedstock, such as cobalt and nickel carbonates and oxides, into the process.

29 May 2019: Umicore and Glencore announce that they have entered into a long-term revolving agreement for the supply of cobalt hydroxide (cobalt) to Umicore’s battery materials value chain. The cobalt will be sourced from Glencore’s state-of-the art industrial mining operations, KCC and Mutanda, located in the DRC. Umicore has assessed each operation as fully compliant with its sustainable procurement framework for cobalt which excludes artisanally mined cobalt from its supply chain, as well as any form of child labor.

The cobalt units will be shipped to Umicore’s cobalt refineries globally, including the Kokkola refinery in Finland once the ongoing acquisition process is complete. The agreement guarantees Umicore’s security of supply for a substantial part of its longer-term cobalt needs for its expanding global battery materials value chain. The agreement also provides Glencore long-term market access for its cobalt raw materials in line with Umicore’s growing cathode materials sales.