Navigating Cobalt

Why is cobalt the hidden force powering the technological advancement and global energy shift?

Scientific Properties of Cobalt

Cobalt is a hard, brittle transition metal with atomic number 27 and symbol Co. It has a high melting point of 1,495°C and is magnetic. Cobalt is primarily found in association with nickel ores and is extracted as a byproduct of nickel refining. It forms compounds in both divalent and trivalent states and is used in alloys, magnets, and catalysts. Many cobalt compounds are known for their vibrant blue colours, however, in its pure metallic form is a silver-grey and not blue. Cobalt is valued for its hardness and resistance to wear and tear. Cobalt is also moderately ductile and malleable, allowing it to be worked into wires and sheets without breaking.

Uses and Future Applications

Cobalt is a vital industrial metal known for its unique properties, including high melting points, magnetic characteristics, and excellent wear resistance. Its primary use is in rechargeable lithium-ion batteries, where it serves as a critical component in the cathodes. Cobalt’s role in battery production accounts for about 50% of global cobalt consumption. These batteries are essential for portable electronics, laptops, smartphones, electric vehicles (EVs), and off/on-grid energy storage systems. The growing demand for EVs and renewable energy storage solutions is expected to be a major driver of cobalt demand in the future.

Cobalt’s second-largest use is in the production of superalloys. These high-performance alloys, which contain cobalt, are used in aerospace, gas turbines, and other applications requiring materials that can withstand extreme temperatures and stress. Superalloys account for approximately 20% of cobalt consumption, highlighting their importance in high-tech and high-stress environments.

Another significant application of cobalt is in the production of hard metals and cutting tools. Cobalt is used as a binder in tungsten carbide-based materials, which are essential for making cutting and drilling tools used in manufacturing and mining. This sector consumes around 10% of the global cobalt supply.

Cobalt is also used in the chemical industry, where it acts as a catalyst in the production of various chemicals, including those used in the petroleum and plastic industries. Additionally, cobalt compounds are used in pigments and dyes for ceramics, glass, and paints due to their vibrant blue colour.

Despite potential challenges related to supply chain issues and ethical sourcing, cobalt is expected to remain a critical material in industrial applications due to its unique properties and established production infrastructure. The ongoing advancements in battery technology and the shift towards sustainable energy solutions will likely secure cobalt’s position as a vital industrial metal.

Future demand for cobalt is likely to remain robust, driven by a global transition to electric vehicles and energy storage/battery storage systems. There is also an ongoing need for cobalt in hard high-performance materials, which is applicable in aerospace and various industrial applications.

Largest Sources and Producers of Cobalt

There are major risks facing the cobalt supply chain, including geopolitical instability, ethical concerns, and market volatility. A substantial portion of cobalt is mined in the Democratic Republic of Congo (DRC), a region plagued by political instability, corruption, and armed conflict. This raises concerns about the security and reliability of supply. Additionally, artisanal mining in the DRC often involves child labour and unsafe working conditions, prompting ethical concerns and potential regulatory actions that could disrupt supply chains. These dynamics will drive a need for ethical cobalt mine supply in the long run. Market volatility is another risk, as fluctuations in cobalt prices can impact the economic viability of mining projects and lead to supply shortages or surpluses. Furthermore, the push for battery technologies with reduced or no cobalt content, driven by supply concerns and ethical considerations, may affect future demand and investment in cobalt mining.

Cobalt is found in few places around the world and according to the 2024 US Geological Survey (USGS). Global cobalt reserves stand at 11,000 kilo tons (Kt or 1000t) with the largest reserves being the Congo (DRC) at 6,000 Kt (55%), Australia at 1700 Kt (15%), Cuba at 500Kt (5%), Indonesia at 500Kt (5%), Philippines at 260Kt (2%) and Russia at 250 Kt (2%). The remainder of the world makes up 1790 Kt (or 16%) of cobalt reserves.

Cobalt mine production since 2019 has increased at a CAGR of 9%, with Congo DRC making up the largest contributor. Over the last two decades (since 2000), Congo DRC has accounted for 58% of total mined cobalt production, followed by Russia (6%), Australia (5%), and Canada (5%). The rest of the world made up 26% of mined cobalt since the year 2000. In 2023, Congo DRC accounted for 74%, or 170Kt of global cobalt production of 230Kt, which makes it a critical region for this element.

Significant investment and coordinated efforts from the government will be required to address the mining conditions in Congo DRC and ensure a stable supply to the world. Economic development, infrastructure, policies and enforcement will be required to address the child labour and artisanal mining conditions in the region. An increase in cobalt prices long term could provide the funding required to transform the current cobalt supply chain.

At current mine production rates and reserves, the world has c.47.8 years left of cobalt mining on existing reserves. To create a stable supply for an energy transition, there is likely going to be major mining sector reforms in the Congo DRC to ensure that supply is ethically sourced.

The Remarkable History of Cobalt

Cobalt, a metal now integral to modern technology and energy storage, has a history filled with fascinating twists and turns. Known to ancient civilizations but not fully understood until the modern era, cobalt’s journey from an obscure element to a critical component of high-tech applications is both intriguing and profound.

Cobalt’s story begins over 2,000 years ago when it was used by ancient civilizations to create a distinct blue pigment. Egyptian artisans used cobalt compounds to add colour to their pottery and glass, and the Chinese employed it to decorate their porcelain. However, the metal itself remained elusive and mysterious for centuries. In medieval Europe, cobalt was mined in the Harz Mountains of Germany. Miners referred to it as “kobold,” a term meaning “goblin” in German, due to the poisonous arsenic vapours released during the smelting process. These vapours often led to sickness, causing the miners to associate the metal with malevolent spirits. Despite these dangers, the vivid blue pigment derived from cobalt continued to be highly prized.

Cobalt’s true nature was unravelled in the 18th century by Swedish chemist Georg Brandt, who is credited with discovering cobalt around 1735. Brandt demonstrated that the blue pigment produced by cobalt was due to the metal itself, not the bismuth it was often found with. This discovery marked a significant advancement in the understanding of cobalt and its properties. The 19th century witnessed the first industrial uses of cobalt, particularly in the production of cobalt blue pigments for the ceramics and glass industries. These vibrant pigments remained in high demand for decorative arts and manufacturing. The early 20th century marked a turning point for cobalt with its introduction into the field of metallurgy. Metallurgists discovered that cobalt could be alloyed with other metals to create high-strength, temperature-resistant materials. This led to the development of superalloys used in jet engines and gas turbines, revolutionizing the aerospace and energy industries. The discovery of large cobalt deposits in Canada, particularly in Ontario’s Cobalt, a town named for its rich deposits, significantly boosted global cobalt production. By the mid-20th century, the demand for cobalt had expanded beyond pigments to include critical applications in batteries, magnets, and cutting tools.

During the Cold War, cobalt became strategically important due to its use in military applications. The metal was essential for producing jet engines, missile components, and nuclear weapons, making it a critical resource for national defence. This period saw increased exploration and mining activities worldwide, with significant cobalt production emerging from Africa, especially the Democratic Republic of the Congo (DRC). The late 20th century heralded the rise of cobalt’s most transformative application: rechargeable batteries. The development of lithium-ion batteries, which utilize cobalt to enhance energy density and stability, revolutionized portable electronics. This breakthrough enabled the proliferation of laptops, mobile phones, and other devices, solidifying cobalt’s role in the technology sector.

The 21st century has seen cobalt’s significance skyrocket, driven by the global transition to renewable energy and electric vehicles (EVs). The early 2000s marked a significant increase in cobalt demand due to the burgeoning electric vehicle market. Companies like Tesla and other EV manufacturers drove the need for high-performance batteries, leading to increased cobalt mining and refining activities. Cobalt’s high energy density makes it a critical component in lithium-ion batteries, essential for powering EVs and storing renewable energy. Significant cobalt deposits continue to be discovered worldwide, with the DRC leading global production. The DRC’s rich cobalt reserves have positioned it as a central player in the global supply chain, despite ongoing challenges related to ethical sourcing and political instability. Other notable cobalt-producing countries include Australia, Canada, and Russia, each contributing to the growing demand.

The 2008 Global Financial Crisis highlighted the need for resilient and sustainable energy sources. Investments in renewable energy infrastructure and battery technologies surged, driving further demand for cobalt. This period saw significant advancements in battery chemistry and increased production capabilities. The 2010s brought increased scrutiny to the ethical sourcing of cobalt, particularly from the DRC. Concerns over child labor, unsafe working conditions, and environmental degradation led to calls for more transparent and responsible supply chains. Initiatives to improve mining practices and traceability became a focus for the industry.

With the rapid expansion of the cobalt industry, environmental and ethical considerations have become paramount. The extraction of cobalt, particularly in the DRC, poses significant environmental and social challenges. The industry has had to adapt by implementing more sustainable and ethical practices, investing in technologies to reduce environmental impact, and improving the conditions for miners. As the world continues to transition towards renewable energy and electrification, cobalt’s importance is set to grow. The metal’s superior properties make it indispensable for next-generation energy storage solutions, including advanced batteries and energy-efficient technologies. Ongoing research aims to improve cobalt extraction methods, enhance battery performance, and increase recycling rates. The future of cobalt is closely tied to the global push for sustainability and energy efficiency.

The 2020s have been characterized by an accelerated transition to renewable energy and electric transportation. Governments worldwide have implemented policies to promote EV adoption and reduce carbon emissions, further boosting cobalt demand. This period has also seen advancements in battery recycling technologies to ensure a more sustainable supply of cobalt. From its ancient use as a blue pigment to its central role in modern technology, cobalt’s journey is a testament to its enduring value and versatility. Its story reflects the dynamic interplay between natural resources and technological advancements, shaping the future of our energy landscape.