Cobalt Oxalate MarketSize and Trends

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 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.