January 8, 2024
Cobalt prices trended downward between 2010 and 2016 from a monthly high of USD $43,000 per tonne to a low of just over $20,000. On an annual average basis, prices dropped from $40,000 to $26,000. This decline was driven by increased supply coupled with market concerns. The price of cobalt surged from 2016 through 2018 from the low of $20,000 to a peak of almost $95,000. This jump in price was driven by a rapid increase in the demand for lithium-ion batteries. Following the run-up in prices, adjustments to supply and market conditions stabilized the price in the $30,000 range for a couple of years. A second price spike occurred starting in 2021 which saw prices jump to over $80,000 by early 2022 driven primarily by supply chain issues at the same time as demand for EV batteries increases. An easing of the bottlenecks and increasing supply has pushed prices back down to the current level in the $35,000 range. Going forward, cobalt prices are expected to increase as demand for the material outpaces available supply.
Source: US. Geological Survey
Source: London Metal Exchange