Experts: China May Restrict Cobalt Supply after Rare Earth

Due to the vigorous development of electric vehicles in recent years, the application of cobalt in lithium batteries has become more widespread. Some experts pointed out that because China’s controls more than 60% of the global Co supply, the metal is likely to become another card for our country to retaliate against other countries after rare earth.

The report pointed out that most of the global Co supply now comes from the politically unstable Democratic Republic of Congo, most of which is held by the Chinese capital. Data shows that in 2019, more than 70% of the metal mined globally came from the Congo, and 8 of the country's 14 largest miners are Chinese-owned, accounting for almost half of the country's output.

The control of Congo's cobalt mines as rare earth enables the Chinese authorities to control more than 60% of its global supply. According to the OECD report in 2019, more importantly, 80% of the metal produced in the world is refined by China.

Consulting firm Energy Brainpool said the hegemony over Co has caused price increases and material supply risks in recent years. Last year, the price of cobalt was US$31,419 per ton, but as of April 1 this year, the price soared 59.5% to US$50,105.

Data show that by 2026, global Co demand will increase to 225,000 tons per year, but the supply will only increase to 222,100 tons, causing a supply shortage of 2,900 tons.

For South Korea, this situation is worrying, because China could take advantage of the supply shortage of cobalt and rare earth, as well as give priority to the supply of Co to Chinese battery factories, such as CATL, thus suppressing the growth of the top three electric vehicle battery factories in South Korea, including LG Energy Solution, Samsung SDI and SK Innovation. These three South Korean battery factories accounted for 34.7% of the global electric vehicle battery market last year.

• < Prev
• Next >