The cobalt market has been overwhelmed by a record glut as Chinese companies boost their output, with the surplus of the key electric car battery metal set to last until 2028, according to an influential market report. Production of the silvery metal surged 17 per cent year-on-year in 2023, flooding the market as global demand growth for electric vehicles sharply decelerated, according to an annual review by Darton Commodities, a UK-based cobalt trader.
As a result of aggressive Chinese investment, Darton Commodities now expects China to own or operate as much as 60 per cent of the world’s cobalt supply by 2025, up from 54 per cent currently. Just last year, it had only expected a 50 per cent market share by mid-decade. Indonesia has also been increasing the supply of cobalt — which is produced as a byproduct from nickel extraction — at Chinese-owned mines, doubling output to 18,200 tonnes, equivalent to 8 per cent of global supply.