The cobalt market is facing high demand, but analysts advise that production is also on the rise.
One of the metal’s main catalysts is excitement about electric vehicles. The lithium-ion batteries that power electric vehicles require lithium, graphite and cobalt, among other raw materials, and demand for these important commodities is expected to keep rising as the shift toward clean technologies continues at a global scale. Additionally, the metal is predominantly produced as a by-product of copper and nickel, two other metals that are important for the green transition.
Read on for a closer look at cobalt supply and which countries lead in production.
Mine production: 170,000 metric tons
However, cobalt mining in the DRC is associated with rampant human rights abuses and child labor, due in part to the large presence of unregulated artisanal mining. Attempts have been made to regulate the DRC’s artisanal mining sector. But with hundreds of thousands of people relying on artisanal mining for income, eliminating it completely isn’t possible.
Mine production: 17,000 metric tons
Mine production: 8,800 metric tons
Mine production: 4,600 metric tons
Despite holding a large amount in reserves, Australian cobalt production contracted year-over-year from 2022 to 2023. After output spiked to 5,900 metric tons in 2022, cobalt production declined to 4,600 metric tons in 2023.
As is the case for many other countries on this list, cobalt is produced in Australia as a by-product of copper and nickel mining. The country’s nickel mines are located in the western part of the country, mostly around the Kalgoorlie and Leonora regions.
Another important cobalt project in the country under Cobalt Blue is the Broken Hill project, which will allow for cobalt production on-site, rather than extracted as a by-product of nickel. Broken Hill is planned to begin production in 2026, and is anticipated to have an output of around 4,000 metric tons of cobalt annually over a 20 year mine lifespan.
Mine production: 4,000 metric tons
Madagascar’s cobalt production was suspended in 2020 to prevent the spread of COVID-19, leading the country’s output for the year to fall to 850 from 3,400 MT in 2019. However, Madagascar’s cobalt-mining industry rebounded through 2021, putting out 3,500 MT in 2022, and 4,000 MT in 2023.
Mine production: 3,800 metric tons
The Philippines is the sixth largest cobalt producer in the world. The country’s cobalt production has remained steady over the last two years, coming in at 3,800 metric tons. The Asian country is also a top nickel producer.
Mine production: 3,200 metric tons
Cuban cobalt production fell in 2023 to 3,200 metric tons, down from 3,700 MT in the year prior.
Mine production: 3,000 metric tons
Although cobalt production in New Caledonia has increased year-over-year, climbing from 2,000 MT in 2022 to 3,000 metric tons in 2023, the island nation’s primary cobalt producing mine has been embroiled in controversy.
Mine production: 2,900 metric tons
Papua New Guinea has made the list of top cobalt producers by country for the sixth year in a row. In 2023, the small country off the coast of Australia produced 2,900 MT of cobalt as a by-product of nickel production, staying nearly flat with the previous year’s output of 3,000 MT.
Mine production: 2,800 metric tons
Taking the tenth spot on the list is Turkey, which has seen its annual cobalt output rise from 2,100 MT in 2022 to 2,800 metric tons in 2023. The Middle Eastern nation also boasts large reserves totaling 91,000 MT.
It went on to point out that in the Balkans and Turkey, 27 nickel laterite deposits are known to contain cobalt in significant quantities, with several deposits holding over 10,000 MT of cobalt metal. Currently, only nickel is extracted from these deposits, but advancements in processing technologies like high-pressure acid leaching may allow for cobalt recovery in the future.
Most cobalt production takes place in the DRC, which is known for artisanal mining. Artisanal miners are adults and children who are not employed by mining companies, but mine independently using their own tools or just their hands.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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