Cobalt Oxalate is Estimated to Witness High Growth Owing to Wide Application in Various Industries

Cobalt oxalate is a cobalt compound used as a precursor for manufacturing cathode materials in lithium-ion batteries and cobalt metal. It provides high energy density and structural stability in batteries. The increasing use of cobalt oxalate in batteries for electric vehicles and portable electronic devices is driving its demand. The global cobalt oxalate market is estimated to be valued at US$ 792 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing adoption of electric vehicles across the globe presents a major opportunity for the cobalt oxalate market. Cobalt oxalate finds wide application as a precursor in manufacturing battery cathode materials for electric vehicles. According to the International Energy Agency (IEA), electric car sales surged to 6.6 million in 2021, with growth of over 100% compared to 2020. Many countries have set targets to ban internal combustion engine vehicles in the coming years to reduce emissions. For instance, Norway aims to ban sales of new gasoline and diesel cars by 2025. This rising demand for electric vehicles, and in turn lithium-ion batteries, is anticipated to boost consumption of cobalt oxalate during the forecast period.

Porter's Analysis

Threat of new entrants: Low barrier to entry due to low initial capital costs. However, established players dominate most applications and have strong brand recognition.

Bargaining power of buyers: Buyers have moderate bargaining power. Large buyers can negotiate prices but switching costs are low.

Bargaining power of suppliers: Suppliers have high bargaining power due to scarce global cobalt reserves concentrated in few countries and players.

Threat of new substitutes: Threat of substitutes remains moderate as alternatives are limited for current applications. R&D ongoing on new chemistries.

Competitive rivalry: Intense competition among established players to defend applications and market share. Industry concentrated among few producers.

SWOT Analysis

Strength: Wide end-use applications like batteries, pigments and ceramics ensure constant demand. Scarcity makes cobalt critical resource for energy storage technologies.

Weakness: China controls majority of downstream processing. Supply chain exposed to geopolitical risks as reserves concentrated in few jurisdictions.

Opportunity: Rising demand for electric vehicles and energy storage drives cobalt needs. Technology advances reduce usage in batteries.

Threats: Volatility in raw material prices. Substitution threat from developers of newer battery chemistries.

Key Takeaways

The global cobalt oxalate market is expected to witness high growth over the forecast period of 2023 to 2030 supported by growth in end-use industries. Asia Pacific accounts for more than half of the global demand attributable to robust growth in lithium-ion battery sector led by China. Countries like South Korea and Japan also represent major markets.

Regional analysis indicates Europe and North America to emerge as high growth regional markets attributed to rapid expansion of electric vehicles industry along with energy storage infrastructure buildup. Government incentives and regulations promote use of renewable energy sources and storage options.

Key players operating in the cobalt oxalate market are Umicore N.V., Freeport-McMoRan Inc., Glencore plc, Huayou Cobalt Co., Ltd., Sherritt International Corporation, Jinchuan Group International Resources Co. Ltd., Sumitomo Metal Mining Co., Ltd., Norilsk Nickel, ERAMET SA, Umicore Cobalt & Specialty Materials (formerly known as Cobalt & Specialty Materials). Leading players are investing in cobalt mining projects and downstream integration to secure supply and focus on high performance grades for battery industry.

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