On May 17, the cobalt market report released by the research institute cobalt Institute showed that electric vehicles have surpassed smartphones and personal computers and become the largest source of demand for cobalt for the first time. The report points out that the global demand for cobalt will increase by 22% to 175000 tons in 2021, with a record increase, and this upward trend will continue.
With the sales volume of electric vehicles and hybrid vehicles doubling, electric vehicles consumed 59000 tons of cobalt in 2021, accounting for 34% of the total demand; The cobalt demand of mobile phones is 26000 tons; 16000 tons of laptops and tablets.
The research institute predicts that as the automotive industry produces more electric vehicles, cobalt demand will increase from 175000 tons in 2021 to 320000 tons in the next five years. Although cobalt supply is expected to increase this year and 2023, and the market is more balanced, the supply will begin to slow down from 2024. "From 2024 to 2026, supply will increase by an average of 8% a year, while demand will increase by more than 12%." Moreover, by 2026, electric vehicles will account for half of cobalt demand.
According to the report, the Democratic Republic of the Congo remains the largest cobalt supplier, accounting for 74% of the global cobalt supply; China is still the largest producer of cobalt in the world (72%); Indonesia is the largest growth market for refined cobalt production after China.
The above data highlight one of the biggest challenges facing the automotive industry in the process of electrification - ensuring sufficient raw materials. As a result, large carmakers are likely to acquire mining companies.
Elon Musk, Tesla's chief executive, said last week that he was open to the idea. "It's not impossible because we need to address any constraints on the transition to sustainable energy. It's not that we want to buy mining companies, but if this is the only way to accelerate the transition, we will."
