The majority of cobalt producers may be losing money on every ton of cobalt they produce after a price slump last year, Reuters reported with a reference to Benedikt Sobotka, CEO of Eurasian Resources Group (ERG).
"Cobalt had a terrible year in 2023. The lack of supplier discipline in adding new capacity has really pulled the rug under the cobalt market," said Sobotka to Reuters at the World Economic Forum in Davos. ERG is 40% owned by the Kazakhstan government and has assets in Kazakhstan, the Democratic Republic of Congo (DRC) and Brazil producing cobalt, copper, aluminium and ferroalloys.
Cobalt market supply spiked last year and prices fell helped by the soaring output at the major $1.8-billion Kisanfu mine in the DRC operated by Chinese mining giant CMOC, as well as rising production in Indonesia and a rebound in exports from CMOC’s other operation in Congo, Tenke-Fungurume. The surplus persisted through 2023 as prices slumped around 30%. Cobalt is one of the key components for EV batteries.
The market fundamentals, however, remain intact as global EV penetration rates are growing, Sobotka added.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
