Cobalt’s EV Battery Comeback as Prices Nearly Double

Congo’s Cobalt Export Ban Sparks Price Surge

Cobalt’s EV battery comeback is gaining serious momentum as global prices have nearly doubled in 2025. This surge follows a strategic export ban from the Democratic Republic of Congo (DRC), which controls over 80% of global cobalt supply. Initially implemented in February and extended in June, the four-month export freeze significantly tightened the market. As a result, cobalt sulphate prices in China—the world’s largest EV battery producer—have jumped over 90% year-to-date, averaging $6,947 per tonne in August.

While this price is still well below the 2022 peak of $19,000 per tonne, the recovery signals renewed vitality in the cobalt supply chain. Research from Toronto-based Adamas Intelligence shows that battery-grade cobalt is once again driving market value, as EV battery demand outpaces other sectors like aerospace. The EV battery sector alone accounted for $180.1 million in cobalt consumption in August—the highest monthly value since December 2022.

The DRC’s export restrictions have had a profound effect on market dynamics, benefiting producers like CMOC. However, challenges remain. Glencore, the world’s second-largest cobalt miner, recently warned that a large portion of its output could remain unsold by year-end, highlighting ongoing supply-demand mismatches.

Cobalt’s Role in EV Batteries Expands Despite Chemistries Shift

Even as automakers pivot toward lithium iron phosphate (LFP) batteries and low-cobalt chemistries, cobalt continues to hold strategic value. In August, the total value of nickel, cobalt, and manganese metals installed in EVs reached $1.28 billion. Cobalt alone contributed more than $70 per vehicle on average—up from less than $40 earlier this year.

High-nickel cathode chemistries with reduced cobalt content (<10%) now dominate EV production. Despite this trend, cobalt’s price resilience suggests its critical role isn’t fading soon. This is especially true for performance-oriented EVs and plug-in hybrids, where cobalt-containing NCM batteries remain preferred for their energy density.

Meanwhile, the U.S. Department of Defense has stepped into the market with a tender for 7,500 tonnes of cobalt over five years. This marks its first cobalt stockpile move since 1990, emphasizing the metal’s geopolitical importance. However, the volume is modest compared to the scale of potential DRC exports waiting in the wings.

SuperMetalPrice Commentary:

Cobalt’s EV battery comeback reflects a classic commodity rebound: constrained supply meets revitalized demand. The DRC’s export strategy has served as a short-term catalyst, but longer-term trends—such as evolving cathode chemistries and geopolitical stockpiling—will dictate price direction. Should Kinshasa lift restrictions and stockpiled material re-enter the market, prices could face downward pressure. Yet, with global EV adoption accelerating and strategic reserves growing, the floor for cobalt prices may be rising. Investors, automakers, and producers alike should watch for signals from both the Congo and Washington.