By now we know that cobalt is in short supply, because the source is rare and the demand is high. Moreover, cobalt is an essential component of lithium-ion batteries as it increases their performance seven-fold. The west is increasingly relying on lithium-ion batteries for digital devices and energy storage. What will happen if cobalt demand increases beyond what supply can stand?
Market Watch Reports a Steady Increase in Demand for Cobalt
Market Watch relies on a report by Roskill Information Services. Roskill says cobalt demand increases amounted to 13.5% per year between 2010 and 2017. They think it will grow at a 1% faster rate through to 2027 due to electric vehicle demand.
It also adds that he battery sector accounted for 53% of cobalt consumption in 2017. Cobalt availability will negatively affect the green energy movement if it stalls, not to mention the digital world. Therefore, as North Americans we need to consider whether we are putting ourselves out on a limb by using lithium-ion batteries for discretionary devices when cobalt supplies are not really under our control.
Cobalt Demand Increases While Supply Largely Stands Still
Cobalt is available in only a few places in economically exploitable quantities. The Democratic Republic of Congo has 40% of global reserves, and commands 65% of sales. However China is quietly buying up the mines.
Russia and Australia share most of the remainder, with Canada, Cuba, Philippines, Madagascar, Papua New Guinea, Zambia and New Caledonia making minor contributions. The United States has no meaningful reserves, yet is a major consumer of the rare metal.
We believe the west needs to take two urgent actions. These are to plow more money into lead-acid batteries for energy storage, and to find new battery technologies for digital devices and electric vehicles. We should stand together before cobalt demand increases to a point, where the cost of stored energy becomes beyond the reach of many.
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Preview Image: Cobalt is Often Found alongside Copper and Malachite