The global cobalt market size was valued at approximately USD 16.96 billion in 2024 and is projected to grow significantly, reaching a value of around USD 25.91 billion by 2030. This anticipated expansion reflects a compound annual growth rate (CAGR) of 6.7% from 2025 to 2030. One of the major driving forces behind this market growth is the increasing global production and adoption of electric vehicles (EVs). As the demand for cleaner and more sustainable transportation options rises, EV production is accelerating rapidly, thereby boosting the consumption of cobalt.

A substantial portion of cobalt is used in the manufacturing of lithium-ion batteries, specifically lithium-nickel-manganese-cobalt-oxide (NMC) batteries. These batteries are currently among the most widely adopted chemistries in electric vehicles. The cathodes of NMC batteries typically contain between 10% to 20% cobalt. The inclusion of cobalt in these batteries is essential as it plays a critical role in enhancing the energy density, stability, and lifespan of the battery, directly contributing to the driving range and overall durability of electric vehicles.

Beyond electric vehicles, lithium-ion batteries containing cobalt are also used in various other applications, such as power tools and electric bicycles (e-bikes), both of which are witnessing increasing demand worldwide. These additional applications further support the upward trajectory in cobalt consumption.

The United States represents one of the prominent markets for cobalt due to its robust automotive and aerospace industries. The country has undertaken significant initiatives to strengthen its domestic EV supply chain, particularly in response to geopolitical uncertainties and the global push for cleaner energy solutions. A key policy development in this direction is the Inflation Reduction Act (IRA), which provides incentives and regulatory support to boost the domestic production of EVs and associated components. Following the enactment of the IRA, notable EV and battery manufacturers announced a combined investment of USD 52 billion in the North American EV supply chain between August 2022 and March 2023. Importantly, approximately 50% of this investment has been allocated to battery production, directly increasing the demand for cobalt as a key battery raw material.

Key Market Trends & Insights:

• The Asia Pacific region emerged as the leading market in 2024, accounting for more than 79.5% of the total global revenue share. This dominance is largely attributed to the presence of major battery manufacturers and EV producers in countries like China, South Korea, and Japan, along with extensive investments in battery materials and technologies.
• In Europe, the cobalt market is projected to experience steady growth, with a revenue CAGR of 6.3% forecasted for the period from 2025 to 2030. The region’s emphasis on green technologies and its rapidly expanding EV sector are key contributing factors.
• One notable trend is the increasing investment in lithium battery production, which is anticipated to significantly drive the demand for cobalt sulfate—an essential compound used in battery cathodes. Moreover, the cobalt oxide segment, another critical material used in ceramics, batteries, and pigments, is expected to register a revenue CAGR of 6.1% over the same forecast period.
• Furthermore, the superalloys segment, which includes applications in aerospace, turbines, and industrial machinery, is projected to grow at a CAGR of 5.4% in terms of revenue between 2025 and 2030.

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Market Size & Forecast:

• 2024 Market Size: USD 16.96 Billion
• 2030 Projected Market Size: USD 25.91 Billion
• CAGR (2025-2030): 6.7%
• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

The global cobalt market is characterized by the presence of several prominent players who are actively contributing to market development through technological innovation, strategic partnerships, and expansion of production capabilities. Notable companies include:

• Umicore: A globally recognized materials technology company headquartered in Belgium, Umicore specializes in sustainable solutions, particularly in the areas of catalysis, battery materials, and precious metal recycling. The company is at the forefront of developing clean mobility technologies and promotes resource efficiency. Its operations in battery materials, including cobalt, play a significant role in meeting the rising global demand for EVs and sustainable energy storage.
• Sumitomo Metal Mining Co., Ltd.: This Japan-based enterprise is involved in a wide range of activities including mining, metal smelting, and the development of advanced materials. The company focuses heavily on the production and refining of copper, nickel, and cobalt—key components for the battery industry. Sumitomo is also engaged in supplying battery components, further strengthening its position in the growing EV and battery supply chain.
• Glencore: Although not elaborated in the original text, Glencore is another key player known for its extensive cobalt mining operations, particularly in the Democratic Republic of Congo (DRC), which is the world’s largest source of cobalt. The company's vertically integrated supply chain and strategic partnerships with battery and EV manufacturers make it a critical stakeholder in the cobalt value chain.

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Conclusion:

In conclusion, the global cobalt market is poised for substantial growth, driven primarily by the rising adoption of electric vehicles and expanding lithium-ion battery production. Increasing investments in EV supply chains, particularly in North America and Asia Pacific, alongside growing applications in aerospace and superalloys, are expected to sustain market momentum through 2030.