January 8, 2024

Total global resources of Cobalt are estimated to by about 25 million tonnes. Of this total resource, there is just over 8 million tonnes of proven reserves. Almost half of proven reserves (4 million tonnes) are found in the Democratic Republic of the Congo. Australia has the next largest proven reserves base with almost a 20% share (1.5 million tonnes) followed by Indonesia with about 7% (0.6 million tonnes). Over half of the cobalt proven reserves are found in regions that are considered politically unstable (Congo) or have sanctions against them (Russia). This could impact both the supply chain and total amount of cobalt available for the growth in demand for EV batteries. Reserves life for cobalt in politically stable countries is around 13 years. Additional cobalt resources must be developed to meet demand after 2030-2035, which would require significant investment. Incorrys believes that limited reserve life for cobalt will lead to price increases new mine development lags demand, and new deposits are likely to have lower ore quality.

Source: US Geological Survey – Mineral Commodity Summaries 2023