COBALT OXALATE MARKET ANALYSIS

Global Cobalt Oxalate Market size is estimated to reach US$ 1,159.8 Mn by 2030, from US$ 792 Mn in 2023, at a CAGR of 5.6% during the forecast period. Cobalt oxalate is a chemical compound with the formula CoC2O4. It is a white, odorless, and tasteless solid that is soluble in water. Cobalt oxalate is mainly used to make metallic cobalt powder and other cobalt salt raw materials. It is also used in the manufacture of ceramics, glass, and enamels.

The growth of the global cobalt oxalate market is driven by the increasing demand for cobalt in the production of lithium-ion batteries. Cobalt is a key component of lithium-ion batteries, which are used in a variety of electronic devices, including smartphones, laptops, and electric vehicles. Increasing demand for these devices is expected to drive the demand for cobalt oxalate in the near future.

Global Cobalt Oxalate Market Regional Insights

• Asia Pacific is the largest market for cobalt oxalate, accounting for a market share of over 40% in 2022. The market growth in this region is driven by the increasing demand for cobalt in the production of lithium-ion batteries and magnets. China is the largest market for cobalt oxalate in Asia Pacific, followed by India and South Korea.
• North America is the second-largest market for cobalt oxalate, accounting for a market share of over 25% in 2022. The market growth in this region is driven by the increasing demand for cobalt in the production of electric vehicles and wind turbines. The U.S.is the largest market for cobalt oxalate in North America, followed by Canada and Mexico.
• Europe is the third-largest market for cobalt oxalate, accounting for a market share of over 15% in 2022. The market share in this region is driven by the increasing demand for cobalt in the production of magnets and lithium-ion batteries. Germany is the largest market for cobalt oxalate in Europe, followed by France and Italy.

Figure 1. Global Cobalt Oxalate Market Share (%), By Region, 2023

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Global Cobalt Oxalate Market Drivers

• Growing demand for rechargeable batteries: Cobalt oxalate is a crucial component in the manufacturing of lithium-ion batteries, which are extensively used in portable electronic devices, electric vehicles, and energy storage systems. With the increasing adoption of electric vehicles and renewable energy sources, the demand for cobalt oxalate has risen significantly.
• Expansion of the electric vehicle industry: The electric vehicle market has been experiencing substantial growth worldwide. Cobalt oxalate is used in the cathode material of lithium-ion batteries, which are essential for electric vehicles. As governments and consumers push for greener transportation solutions, the demand for cobalt oxalate in the electric vehicle industry is expected to continue to rise. For instance, on 26 April 2023, as per International Energy Agency the electric vehicle (EV) industry experienced significant growth in 2022, with sales expected to leap 35% after a record-breaking year. The share of electric cars in the overall car market rose from around 4% in 2020 to 14% in 2022
• Rising renewable energy installations: Renewable energy installations, such as solar and wind power, are expanding rapidly to reduce reliance on fossil fuels and mitigate climate change. Cobalt oxalate is used in energy storage systems to store electricity which are generated from renewable sources. As the deployment of renewable energy projects increases, the demand for cobalt oxalate for energy storage systems is expected to grow. For instance in 27 March 2023, as per U.S. Energy Information Administration in the United States, renewable generation surpassed coal and nuclear in the electric power sector for the first time, with wind and solar energy expected to add more than 60% of the utility-scale generating capacity to the U.S. power grid
• Technological advancements in electronics: The electronics industry continually demands smaller, more powerful and energy-efficient devices. Cobalt oxalate plays a vital role in the development of high-performance electronics, such as smartphones, laptops, tablets, and wearable devices. The ongoing advancements in electronics and consumer preferences for innovative and feature-rich devices contribute to the demand for cobalt oxalate.

Global Cobalt Oxalate Market Opportunities

• Expansion of renewable energy storage: Increasing penetration of renewable energy sources like solar and wind power necessitates effective energy storage solutions. Cobalt oxalate, as a key component in lithium-ion batteries, offers an opportunity for the development and expansion of energy storage systems. Advancements in battery technology and the integration of cobalt oxalate in energy storage devices can enhance the reliability and efficiency of renewable energy systems. For instance, In December 2022, the Australian Renewable Energy Agency (ARENA) announced funding support for a total of 2 GW/4.2 GWh of grid-scale storage.
• Advancements in electric vehicle technology: Electric vehicles (EVs) are gaining popularity as a greener alternative to traditional combustion engine vehicles. Cobalt oxalate is a vital ingredient in EV batteries, and further advancements in EV technology offer opportunities for the cobalt oxalate market. Continued research and development (R&D) in battery chemistry, such as the exploration of cobalt-free or low-cobalt cathode materials, could provide alternative avenues for cobalt oxalate applications in EVs. For instance, on Feb 2023, according to U.S. Bureau of Labor Statistic S&P Global Mobility forecasted that electric vehicle sales in the United States could reach 40% of total passenger car sales by 2030.
• Emerging markets for portable electronics: The demand for portable electronic devices like smartphones, tablets, and wearables is continuously growing, particularly in emerging markets. Cobalt oxalate is essential for the production of high-performance batteries used in these devices. As disposable incomes rise and technology becomes more accessible in developing regions, there is an opportunity for increased sales and market expansion of cobalt oxalate in the portable electronics sector.
• Recycling and circular economy initiatives: The push for sustainable practices and resource conservation has led to increased focus on recycling and the circular economy. Cobalt is a valuable and limited resource, and the recycling of cobalt-containing products, including batteries, presents an opportunity for the cobalt oxalate market. Developing efficient and cost-effective recycling technologies for cobalt-containing materials can help meet demand while reducing the reliance on primary cobalt sources.

Global Cobalt Oxalate Market Trends

• Shift towards sustainable and ethical sourcing: There is an increasing focus on responsible sourcing of cobalt and sustainable practices throughout the supply chain. Concerns related to child labor, unsafe working conditions, and environmental impacts in cobalt mining have prompted industry stakeholders to take steps towards responsible sourcing. Companies are establishing traceability systems, engaging in partnerships for responsible supply chains, and supporting initiatives that ensure ethical cobalt production. This trend is driven by consumer demand for sustainable products and regulatory pressures to address social and environmental issues.
• Rising investments in cobalt mining projects: Growing demand for cobalt, particularly from the electric vehicle and renewable energy sectors, has led to increased investments in cobalt mining projects. Many countries and companies are actively seeking new sources of cobalt to ensure a stable supply. This trend includes exploration and development of cobalt deposits in regions outside the traditional mining areas, with a focus on enhancing the security of cobalt supply chains. For instance, July 2023 as per International Energy Agency (IEA) the demand for cobalt, in particular, saw a 70% jump, with the energy sector being the main driver behind the tripling in overall demand for cobalt from 2017 to 2022
• Increasing battery energy density: Battery technology advancements continue to drive the global cobalt oxalate market. Improving the energy density of batteries is a key focus to enhance their performance and increase their range in applications such as electric vehicles and energy storage systems. Research and development efforts aim to reduce the cobalt content in cathode materials while maintaining or improving battery energy density. This trend is driven by the need for cost-effective and sustainable battery solutions. For instance, on 18 April 2022, according to U.S. Department of Energy In 2022, the Department of Energy and private industry made substantial progress in increasing the volumetric energy density of lithium-ion batteries, with a notable increase from 55 watt-hours per liter in 2008 to 450 watt-hours per liter in 2020
• Innovation in battery chemistries: Researchers are actively exploring alternative battery chemistries that may reduce or eliminate the use of cobalt in lithium-ion batteries. These include nickel-rich cathode chemistries like nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA) formulations. Nickel-based chemistries offer higher energy density and can potentially lower the dependency on cobalt, thus leading to cost savings and addressing concerns related to cobalt supply and price volatility.

Global Cobalt Oxalate Market Restraints

• Supply chain challenges: The cobalt supply chain is complex and can be vulnerable to disruptions. Cobalt production is concentrated in a few countries, primarily the Democratic Republic of Congo (DRC), which poses geopolitical risks and concerns regarding stability and transparency. Supply chain challenges, including potential political instability, trade restrictions, and price volatility, can impact the availability and cost of cobalt oxalate.
• Environmental concerns: Cobalt mining and processing can have significant environmental impacts, including deforestation, water pollution, and soil degradation. The industry is under increasing scrutiny for its environmental practices, and stricter regulations may be implemented to address these concerns. Compliance with environmental regulations and sustainability standards can pose challenges and increase costs for cobalt oxalate producers.
• Price volatility: Cobalt prices have exhibited significant volatility in recent years due to fluctuations in supply and demand dynamics, geopolitical factors, and changes in market sentiment. This price volatility can create uncertainties for market participants, including cobalt oxalate manufacturers and end users. Fluctuating prices can impact profitability, project viability, and investment decisions across the cobalt industry.
• Dependency on electric vehicle market: The cobalt oxalate market's growth is closely tied to the electric vehicle (EV) market. While the EV industry has been experiencing rapid growth, its expansion is subject to various factors, including government policies, infrastructure development, and consumer preferences. Any slowdown or changes in the EV market could have a direct impact on the demand for cobalt oxalate.

Global Cobalt Oxalate Market Analyst Viewpoint

The global cobalt oxalate market is expected to witness steady growth over the forecast period. Rising demand for lithium-ion batteries from the automotive industry will be a key driver for higher cobalt oxalate consumption. As electric vehicle sales increase significantly year-over-year, battery manufacturers are ramping up production, thus requiring more cobalt oxalate. Asia Pacific, led by China, will remain the dominant as well as the fastest growing regional market. The region is a global manufacturing hub for lithium-ion batteries and electronic products where cobalt oxalate finds wide application.

However, volatility in raw material prices may pose a challenge. Cobalt prices have been rising sharply over the past year due to uncertainty in supply from top producers such as the Democratic Republic of Congo. High dependence on a few countries for cobalt supply makes the market vulnerable to political instability and supply disruptions. This affects the overall cost of batteries. Industry players are focusing on technologies to reduce cobalt content in batteries to mitigate price risks.

New opportunities may arise from growing use of cobalt oxalate as a drying agent and precursor for producing electrodes in lithium-ion batteries. It is also seeing increasing uptake in manufacturing other materials such as ceramics, chemicals and pigments.

Recent Developments

New product launches

• In April, Huayou Cobalt (operates as a supplier of cobalt and its associated products) a China based cobalt mining and processing company, launched a new high-purity cobalt oxalate product. The product is said to be free of impurities and has high cobalt content.
• In May, GME, a German cobalt and nickel mining company, launched a new cobalt oxalate product that is specifically designed for use in lithium-ion batteries. The product is said to be more stable and have a longer lifespan than traditional cobalt oxalate products.
• In June, Ganzhou Tengyuan Cobalt Industrial Co., Ltd., a China based cobalt mining and processing company, launched a new cobalt oxalate product that is said to be more environmentally friendly than traditional cobalt oxalate products. The product is made using a process that does not require the use of harmful chemicals.

Acquisition and partnerships

• In February 2023, Cobalt International Energy (CIE) is a global oil exploration company announced that it had acquired the cobalt oxalate business of American Elements. The acquisition will give CIE a major foothold in the cobalt oxalate market, which is used in a variety of applications, including batteries, magnets, and pigments.
• In March 2023, Glencore (swiss multinational commodity trading and mining company) announced that it had entered into a partnership with Umicore (leading circular materials technology company) to produce cobalt oxalate. The partnership will see Glencore supply Umicore with cobalt hydroxide, which Umicore will then use to produce cobalt oxalate. The cobalt oxalate will be used in Umicore's battery cathode materials business.
• In April 2023, China Molybdenum Corporation (CMC) announced that it had acquired the cobalt oxalate business of Cobalt Development Company (CDC). The acquisition will give CMC a major presence in the global cobalt oxalate market in China, which is the world's largest market for cobalt oxalate.

Figure 2. Global Cobalt Oxalate Market Share (%), By Application, 2023

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Top Companies in Global Cobalt Oxalate Market

• Umicore N.V.
• Freeport-McMoRan Inc.
• Glencore plc.
• Huayou Cobalt Co., Ltd.
• Sherritt International Corporation
• Jinchuan Group International Resources Co. Ltd.
• Sumitomo Metal Mining Co., Ltd.
• Norilsk Nickel
• ERAMET SA
• Umicore Cobalt & Specialty Materials

Definition: Cobalt oxalate is a chemical compound containing cobalt, carbon, and oxygen. It is primarily used as a precursor material in the production of lithium-ion batteries, which are extensively used in various applications such as electric vehicles, consumer electronics, and renewable energy storage systems.