Cobalt oxalate is a chemical compound that has versatile usage across various industries. It is majorly used in manufacturing lithium-ion batteries for applications ranging from portable consumer electronics to electric vehicles. With the world moving towards increased adoption of clean energy solutions and EVs, lithium-ion batteries have become integral for energy storage. Owing to high energy density and longer lifespan, lithium-ion batteries have become preferred over other battery chemistries like lead-acid and nickel-cadmium batteries. Cobalt oxalate provides thermal stability and cycle life to lithium-ion batteries, making them suitable for round the clock operations and faster charging capabilities.

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 Dynamics:
The cobalt oxalate market growth is predominantly driven by rising application of lithium-ion batteries in electric mobility and electronics industries. With global EV sales increasing exponentially and consumer electronics replacing conventional power sources, lithium-ion batteries demand is surging exponentially. As per estimates, lithium-ion battery packs constitute close to 30% of the overall cost of an electric vehicle. Cobalt oxalate contributes to lowering battery costs through improving energy density per unit weight, thus promoting higher EV driving ranges. Furthermore, fast charging capabilities facilitated by cobalt oxalate also support widespread adoption of EVs.

Apart from the key driver above, continuous efforts by market players to develop lithium-ion batteries with lowered cobalt content while maintaining performance is expected to boost sustainable production of cobalt oxalate over the forecast period.

SWOT Analysis

Strength: Cobalt oxalate has excellent electrical and magnetic properties which make it suitable for use in lithium-ion batteries as a cathode material. Cobalt oxalate is also highly stable and has good thermal properties. The rising demand for cobalt from key industries such as electric vehicles and electronics provides opportunities for growth.

Weakness: Cobalt mining is concentrated in politically unstable regions which raises supply risks. The price volatility of cobalt raw materials also poses business challenges for companies. Stricter environment regulations around cobalt mining could increase production costs.

Opportunity: Governments globally are offering incentives and subsidies to boost electric vehicle adoption which will drive the need for lithium-ion batteries using cobalt oxalate as a key material. Expanding cobalt recycling efforts can secure secondary supply sources.

Threats: Substitution threat from alternative battery technologies that use little or no cobalt. Potential supply bottlenecks if major producers face production issues or restrictive trade policies.

Key Takeaways

The global cobalt oxalate market is expected to witness high growth over the forecast period driven by increasing demand for lithium-ion batteries from the automotive and electronics industries. Rising sales of electric vehicles around the world are a major factor supporting the cobalt oxalate market. Regional analysis

The Asia Pacific region currently dominates the cobalt oxalate market and is expected to maintain its leading position over the next decade. This is due to the large presence of battery manufacturers and electric vehicle producers in countries such as China and South Korea. Meanwhile, countries in Europe such as Germany are aggressively pushing electric mobility which is boosting regional cobalt oxalate demand.

Key players

Key players operating in the cobalt oxalate market include 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). Umicore and Glencore are among the largest producers and suppliers of cobalt oxalate globally.