Who knows what will happen over the next couple of years, but according to the cobalt institute, demand will overtake supply around 2025. If these numbers are correct, COB will be in a good position if the processing plant is up and running by 2025. We still need off-take partners to secure funding, and hopefully, management will be able to secure some deals to ensure the project can move along. Article extract and link below.https://investingnews.com/cobalt-institute-forecast/
Cobalt outlook to 2030 looking bright
All in all, the outlook for cobalt remains strong, with demand expected to double by 2030. The leading demand driver will continue to be the EV segment, accounting for 89 percent of growth, followed by energy storage at 3 percent and superalloys at 2 percent.
“Despite the rising share of lithium-iron-phosphate, cobalt-containing cathode chemistries (nickel-cobalt-manganese, nickel-cobalt-aluminum and lithium-cobalt-oxide) will remain as the preferred technology choice for battery applications – accounting for 59 percent of total cathode demand in 2030,” the report states.
Supply is also expected to double by 2030, jumping from more than 200,000 tonnes this year to about 318,000 tonnes. The DRC will remain the leading producer, although its market share will fall by that time.
“Indonesia is the second largest market by some margin and will quickly catch up with the DRC as a major driver of growth,” the report explains. “From 2022 to 2030, Indonesia has the potential to increase cobalt supply by 10 times, compared to the DRC’s output rising by two thirds.
”The cobalt market will remain well supplied until around 2025, when it is expected to shift to a structural deficit.
“Demand growth of 10 percent CAGR is forecast to 2030, compared to 6 percent for supply,” according to the report. “With additional supply required to fill the widening forecast deficit, cobalt prices will move higher to incentivise investment.
”In the meantime, prices are expected to average around US$18 per pound through 2023, at a similar level to prices in late March.
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