Market Shock
Cobalt prices surged to an 18-month high this week after the Democratic Republic of Congo announced new export restrictions on unprocessed cobalt concentrate. The DRC, which produces approximately 70% of the world's cobalt, is pushing miners to process more material domestically.
Price Impact
- Cobalt metal prices rose to $33,500/tonne, up 18% from last month
- Battery-grade cobalt sulfate prices followed, increasing 14%
- Spot market premiums widened significantly for immediate delivery
Strategic Implications
The move accelerates the industry trend toward cobalt-free battery chemistries, with LFP (lithium iron phosphate) batteries gaining market share. However, high-nickel cathodes still require cobalt for stability and energy density.
