Cobalt, a crucial battery material, is suddenly superabundant

How an obstacle to the energy transition disappeared

Dela wa Monga, an artisanal miner, holds a cobalt stone at the Shabara artisanal mine near Kolwezi on October 12, 2022. - Some 20,000 people work at Shabara, in shifts of 5,000 at a time.Congo produced 72 percent of the worlds cobalt last year, according to Darton Commodities. And demand for the metal is exploding due to its use in the rechargeable batteries that power mobile phones and electric cars.But the countrys poorly regulated artisanal mines, which produce a small but not-negligeable percentage of its total output, have tarnished the image of Congolese cobalt. (Photo by Junior KANNAH / AFP) (Photo by JUNIOR KANNAH/AFP via Getty Images) — Image: Getty Images

Feb 16th 2023

Just a year ago a global crunch in one metal looked likely to single-handedly derail the energy transition. Not only was cobalt, a crucial battery material, being dug up far too slowly to meet soaring demand, but the lion’s share of known reserves sat in Congo, a country rife with instability, corruption and child labour. Fast forward to today and the price of the blue metal, which had more than doubled between summer 2021 and spring 2022, to $82,000 a tonne, has collapsed to $35,000, not far from historic lows.

The story is partly one of reduced demand. Most cobalt goes into the battery packs which power smartphones, tablets and laptops. Appetite for these, already strong in the 2010s, exploded during the covid-19 pandemic. It has since waned as people spend less time staring at their screens: as demand for consumer electronics fell, so did that for cobalt. Even a boom in electric vehicles has not been sufficient to counteract this, since manufacturers have done their best to reduce use of the formerly super-expensive metal.

This article appeared in the Finance & economics section of the print edition under the headline "Bolt from the blue"