Cobalt facts

Cobalt is a hard, lustrous, silver-grey metal that is used mainly as a cathode material in lithium ion and other types of batteries. It is also used in powerful magnets, cutting tools and high-strength alloys in the aerospace, energy and defense sectors. Cobalt compounds have been used since antiquity as a pigment for pottery, glass, paints and other media. Additionally, cobalt plays a crucial role in human nutrition as a component of vitamin B12.

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Uses

Batteries are the main end use for cobalt as a cathode material. Electric vehicles currently dominate use, but lithium-ion batteries in cell phones and laptops also consume a sizeable quantity of global cobalt. Stationary energy battery storage accounts for a small but growing portion of cobalt use.

Cobalt is also used in high-strength superalloys, mainly for aerospace applications. In industrial processes, cobalt is used in various metal and chemical products:

• Metal applications: Includes cemented carbides, alloys, magnets and diamond tools.
• Chemical applications: Encompasses a wide range of uses, including pigments, inks, catalysts, tires, and driers.

Production

Canadian production

In 2023, Canada produced 5,099 tonnes of cobalt in concentrate mostly from primary nickel mines in Ontario, Quebec, Manitoba, and Newfoundland and Labrador, marking a 44% increase from the 3,534 tonnes produced in 2022. This production level surpassed the previous record of 5,039 tonnes set in 2019. Mines in Newfoundland and Labrador contributed 43% of Canada's total cobalt output, followed by Ontario at 33%.

In 2023, Canada also produced 4,923 tonnes of refined cobalt at four refineries located in Fort Saskatchewan, Alberta; Port Colborne, Ontario; Thompson, Manitoba; and Long Harbour, Newfoundland and Labrador.

Canadian refineries process nickel and cobalt from domestic and imported materials, primarily sourced from mines in the United States and Cuba.

Looking ahead, cobalt production is expected to continue to come mostly from primary nickel mines in Canada. An exception is the NICO deposit in the Northwest Territories, a cobalt-gold-bismuth-copper deposit currently in advanced exploration stages.

International context

The Democratic Republic of Congo is the world's largest mined cobalt producer, contributing 73.0% of global output. Because of the rapid expansion of its nickel industry, Indonesia has recently emerged as the second-largest cobalt producer, accounting for 7.3% of global production. Cobalt is primarily mined as a by-product of copper or nickel mining, with notable exceptions being artisanal mining in Congo and production in Morocco.

Canada is the fourth-largest cobalt producer globally, accounting for 2.2% of total production.

China leads the world in refined cobalt production, sourcing most of its concentrate or raw ore from the Democratic Republic of Congo and domestic sources. Additionally, China is the largest consumer of cobalt, primarily for battery manufacturing.

World mine production of cobalt, by country, 2023 (p)

Ranking	Country	Tonnes	Percentage of total
1	Democratic Republic of Congo	170,000	73.0%
2	Indonesia	17,000	7.3%
3	Russia	8,800	3.8%
4	Canada	5,100	2.2%
5	Australia	4,600	2.0%
6	Madagascar	4,000	1.7%
7	Philippines	3,800	1.6%
8	Cuba	3,200	1.4%
9	New Caledonia	3,000	1.3%
10	Papua New Guinea	2,900	1.2%
	Other	6,600	2.8%
Total		233,000	100.0%

World reserves

In 2023, global cobalt reserves were estimated at approximately 11.4 million tonnes, with the Democratic Republic of Congo holding the largest share, accounting for 52.8% of the total. Canada ranks third globally, with reserves of 600,000 tonnes.

Cobalt terrestrial resources in 2023 were estimated at approximately 25 million tonnes, while global ocean resources were estimated at 120 million tonnes.

Most terrestrial resources are found in sediment-hosted stratiform copper deposits in the Democratic Republic of Congo. Significant quantities of cobalt are also present as secondary or tertiary minerals in nickel-bearing laterites in Australia, Indonesia, the Philippines, and Cuba and in magmatic nickel-copper sulphide deposits in Canada, Australia, the United States, and Russia.

Additionally, cobalt resources have been identified in polymetallic nodules on the sea floor.

World reserves of cobalt, by country, 2023

Ranking	Country	Tonnes	Percentage of total
1	Democratic Republic of Congo	6,000,000	52.8%
2	Australia	1,700,000	15.0%
3	Canada	600,000	5.3%
4	Indonesia	500,000	4.4%
5	Cuba	500,000	4.4%
6	Philippines	260,000	2.3%
7	Russia	250,000	2.2%
8	Madagascar	100,000	0.9%
9	Türkiye	91,000	0.8%
10	United States	69,000	0.6%
	Other	829,000	7.3%
Total		11,370,000	100.0%

Trade

Exports

• In 2023, the total value of Canadian exports of cobalt and cobalt-containing products was $567.0 million, a 30% decrease from $813.0 million in 2022. These cobalt-containing products include intermediate products of cobalt metallurgy, waste and scrap.
• The majority of Canadian cobalt exports were destined for Norway (19%), followed by South Korea (15%), China (15%), the Netherlands (15%), and the United States (13%).

Imports

• In 2023, the total value of Canadian imports of cobalt and cobalt-containing products was $60.7 million, down 47% from $114.8 million in 2022. These cobalt-containing products include intermediate products of cobalt metallurgy, waste and scrap.
• Canada's cobalt imports were predominantly from the United States (64%), with smaller shares coming from Morocco (6%), Germany (5%), and Australia (4%).

Prices

The price of cobalt experienced volatility during the past decade. In 2023, cobalt prices fell sharply to an average of US$35,000 per tonne, driven by concerns about overproduction and a slowdown in downstream demand. Cobalt remains the most expensive of the battery metals, prompting many countries and companies to invest in research and development of cobalt-free lithium-ion battery alternatives.

Earlier in the past decade, cobalt prices remained relatively stable, averaging between US$26,000 and US$31,000 per tonne from 2014 to 2016. However, prices surged dramatically in 2017, reaching an average of US$56,000 per tonne. In 2018, prices continued to climb, peaking at US$95,000 per tonne in March, with an average of US$73,000 per tonne for the year.

This price increase was driven primarily by rising demand for cobalt in lithium-ion batteries and global policy initiatives aimed at achieving net-zero emissions targets. Supply concerns also played a role. However, by 2019, prices had plummeted to an average of US$33,000 per tonne because of increased output from the Democratic Republic of Congo and the stockpiling of cobalt chemicals in China.

The COVID-19 pandemic further depressed demand for cobalt in 2020, leading to a price decrease to an average of US$31,000 per tonne. Prices began to recover toward the end of 2020, reaching approximately US$51,000 per tonne in 2021 and US$64,000 per tonne in 2022, fueled by increased demand in the electric vehicle sector, before dropping to $35,000 per tonne in 2023.

Recycling

In July 2023, a cobalt sulfate refinery in Timiskaming, Ontario, sent out its first shipment of nickel and cobalt extracted from recycled battery materials. Additionally, another company in the region has begun piloting hydrometallurgical processes for cobalt recycling.