Cobalt will be King in the coming years Most rechargeable batteries (even non-lithium batteries) actually use substantial amounts of cobalt. In nickel-cadmium batteries, cobalt typically comprises about 1% to 5% of the battery. In nickel-metal hybrid batteries, cobalt accounts for up to 15% of the battery.
But in the most advanced types of lithium-ion batteries, cobalt constitutes 60% of the cathode material.
The demand for cobalt in battery applications has risen 13% annually over the past 10 years and is set to continue increasing.
Last year, some 100,000 metric tonnes of cobalt was consumed globally. And this figure is projected to increase by over 5% annually for the next five years, with the use of cobalt in rechargeable batteries increasing by 7.5% annually over the same time.
By 2020, world cobalt consumption is expected to reach 124,000 tonnes, with battery applications accounting for almost 50% of total consumption. And by 2025, cobalt consumption is projected to hit 153,000 tonnes — for an increase of over 50% from current levels.
But there are several issues that could cut supply for this vital material.And the biggest problem is availability.
Nearly 60% of the world's cobalt reserves are located in one country. And it's one with severe political corruption and government uncertainty: the Democratic Republic of the Congo.