Cobalt oxalate is an inorganic compound used as a precursor in the manufacturing of lithium-ion battery cathodes. It provides high energy density and power required for various applications such as consumer electronics, electric vehicles and energy storage solutions. The global cobalt oxalate market has seen significant growth in recent years due to the rising demand for lithium-ion batteries from the automotive and consumer electronics industries. The increasing adoption of electric vehicles around the world is a major factor driving the need for cobalt oxalate.
The global Cobalt Oxalate Market is estimated to be valued at US$ 792 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand for lithium-ion batteries from the automotive industry is a major trend propelling the cobalt oxalate market. With stringent emission regulations and push for electrification of automobiles, global electric vehicle sales have increased manifold in recent years. Many leading automakers are investing heavily in electric vehicles. This rising demand for EVs is favorably impacting the lithium-ion battery market, which in turn is positively influencing the cobalt oxalate market. Cobalt oxalate serves as a precursor in manufacturing cathode materials for lithium-ion batteries. As lithium-ion batteries find increasing usage in electric vehicles and energy storage solutions, the need for cobalt oxalate as a raw material is expected to grow substantially over the forecast period.
SWOT Analysis
Strength: Cobalt oxalate has high practical applications in manufacturing processes such as electroplating, ceramic and glass industries and lithium-ion batteries production. It provides rechargeable batteries superior stability and longevity.
Weakness: The cobalt production and mining process creates environmental and health hazards. Air pollution from cobalt mining and processing causes respiratory disease. Demand fluctuations affect its prices volatility.
Opportunity: Increasing demand for electric vehicles and gadgets fuel the lithium-ion batteries market. This will boost the cobalt oxalate consumption which is a key material in cathode production of rechargeable batteries. Developing cobalt alternatives can mitigate supply chain disruptions.
Threats: Geopolitical issues in major cobalt producing countries pose supply risks. Democratic Republic of Congo accounts for over 50% of world cobalt reserves but unstable political climate poses challenges. Stringent environmental regulations can increase production costs.
Key Takeaways
The global cobalt oxalate market is expected to witness high growth over the forecast period supported by expanding applications in lithium-ion batteries. Regionally, Asia Pacific dominates the market currently owing to strong presence of cobalt oxalate producers and consumers in China, Japan and South Korea. Countries like China have built a strong industrial base for consumer electronics and electric vehicles driving significant material demand.
Key players operating in the cobalt oxalate market are 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 (formerly known as Cobalt & Specialty Materials). The leading companies are focused on capacity expansions and backward integration into mining to ensure secure supply of raw materials. Some players are also exploring cobalt recycling as an alternative source.
Regional analysis
Asia Pacific dominates currently mainly driven by high usage in lithium-ion batteries manufacturing in major economies like China, Japan, South Korea. These countries have presence of large consumer electronics and electric vehicles producers catering to increasing domestic and global demand. The region’s annual market size is expected to grow at over 6% during the forecast period supported by sustained demand growth from end-use sectors.
Key players related content comprises Key players operating in the cobalt oxalate market are 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 (formerly known as Cob
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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