World News: 18:40 GMT Wednesday 17th April 2019. [Market Research Future via Globe Newswire via SPi World News]
Pune, India, April 17, 2019 (GLOBE NEWSWIRE) -- Global Cobalt Market size is expected to touch a size of USD 9,921.4 million by 2023, as per the latest report by Market Research Future (MRFR). It is primarily driven by the use of the mineral in automotive and electronic sectors. The market can expand at 8.25% CAGR over the forecast period (2018-2023) due to renewal of mining contracts of major mining companies.
Cobalt is a mineral found in alloys of meteoric iron. The development of modern electronics which use lithium-ion batteries is causing a surge in the demand for the mineral. Subsidies provided by governments and reopening of mines can attract investors in droves. Rising inclination towards electric vehicles for reducing carbon emission levels is likely to propel the cobalt market demand. The market volume can touch 153.4 kilotons (KT) by the end of the forecast period.
Recent price spikes of cobalt may impede the market growth. Furthermore, adoption of nickel batteries by the Chinese government was one of the main reasons for the decline in cobalt prices.
Well-known cobalt producers include Vale S.A., Jinchuan Group International Resources Co. Ltd, Eramet S.A., Sumitomo Corporation, Sherritt International Corporation, BHP, Freeport Cobalt, Votorantim Metals SA, Umicore, Glencore, and Huayou Cobalt Co. Ltd.
Development of new downstream processes for increasing the production rate has been incorporated into main strategies of these players. In 2019, Independence Group, a mining company in Australia, has filed a patent for a new downstream process which can lower production costs while keeping a steady extraction rate. This patent adheres to new regulations pertaining to clean mining practices and bode well for the global market.
Acquisitions are another major game-changing strategy adopted by players to gain the dominant position in the market. In February 2019, Chengtun Mining Group decided to acquire Nzuri Copper. The latter’s copper-cobalt project will be invaluable to the former, with the mines possessing close to 42,700 million tons.
Resurgence of operations in old mines is expected to augur well for companies. Idled refineries are getting a new lease of life as contracts are being renewed by governments through public-private partnerships. Cobalt, a Canada-based company, is planning to invest close to USD 30 million for upgrading its existing refinery in 2019. The mine can provide a constant supply of cobalt sulphate to end-users in automotive and electronic sectors. In addition, opening of mines in the Democratic Republic of Congo (DRC) has widened the ambit within the market. In 2018, Pengxin International Mining decided to begin operations in its cobalt hydroxide plant.
Sustainable mining practices have grabbed the headlines as mining companies are developing methods to minimize ecological damage. This is evident by the recent joining of Rio Tinto with the Climate-Smart Mining program initiated by the World Bank in 2019.
The global is segmented by form and application.
By form, the chemical compound segment accounted for 55% market share in 2017. The segment is purported to gain high dividends over the forecast period due to the use of the element in lithium-ion batteries. Its application as a colorant in enamel wear, tiles, glass pottery, and porcelain can augur well for the segment growth.
Among applications, the battery chemicals segment is expected to exhibit a phenomenal 7.02% CAGR over the forecast period. this can be attributed to the increasing use of cobalt for the manufacture of lithium-ion batteries, a vital part of portable electronics. The uptick in sales of consumer electronic devices can continue to drive the segment growth and boost the revenue of the cobalt market.
Region-wise, the market is segmented into North America, Europe, Latin America, Asia Pacific, and the Middle East & Africa (MEA).
The APAC region is expected to be lucrative for the cobalt market over the forecast period. This can be credited to China, a major producer of cobalt which accounted for 44% global production in 2016. In March 2018, the country signed a three-year deal with Glencore for a continuous supply of the mineral. Presence of major leaders and the region acting as an industrial hub for developed economies are likely to bode well for the market.
Europe was the second biggest region and can register 8.27% CAGR over the forecast period due to high mining activities in countries such as Italy, U.K., Russia, and Germany. North America is the third biggest producer in the cobalt market, with the U.S. at its forefront. It can exhibit 7.95% CAGR over the forecast period. This can be credited to the presence of major electric vehicle manufacturers such as Tesla.
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Globe Newswire: 18:40 GMT Wednesday 17th April 2019
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