Cobalt is a minor metal resource. As an important raw material for the new energy industry, the price of cobalt has risen all the way along with the growth of downstream market demand.
With the outbreak of the global epidemic, the production of international cobalt ore has been affected to a certain extent, but at the same time downstream demand is increasing. Cobalt is one of the important raw materials for ternary lithium batteries. In the global cobalt consumption structure in 2020, the battery industry accounts for 68.80%, while the downstream new energy automotive industry of power batteries is growing rapidly.
The soaring downstream demand has brought about a situation where the cobalt resource is in short supply. According to Shanghai Metals Market analyst, a global supply and demand gap of 17,000 tons of cobalt will be formed in 2021, but the supply and demand gap will narrow to 9,000 tons by 2022. And according to data from the US Geological Survey, Congo (DRC) cobalt resource has an absolute dominant position. As of 2020, Congo (DRC) cobalt resource reserves account for about 50% of the world's total, and more than 70% of the world's cobalt ore supply comes from Congo (DRC).