The cobalt oxide market is estimated to be valued at US$ 792Mn 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 Overview:
The cobalt oxide market consists of various applications of cobalt oxide in industries such as lithium-ion batteries, pigments, hard materials and coatings and others. Cobalt oxide is used in lithium-ion batteries as cathode material due to its high energy density which makes it ideal for applications in portable electronics, electric vehicles and energy storage. Cobalt oxide has pigmentation properties which makes it useful in production of colored glasses, ceramics and enamels. It is also used as raw material in production of cemented carbide and ceramic tool materials due to its hardness.
Market Dynamics:
The key drivers fueling the growth of cobalt oxide market include increasing demand from lithium-ion battery sector and growing adoption of electric vehicles. Cobalt oxide finds major application as cathode material in lithium-ion batteries due to its high potential. With increasing focus on renewable energy and rising sales of consumer electronics, the demand for lithium-ion batteries is growing substantially which in turn is driving the cobalt oxide market. Additionally, accelerating transition toward electric mobility is further propelling the need for lithium-ion batteries. Various governments are offering subsidies and incentives for electric vehicles to reduce environmental pollution which is positively impacting the electric vehicles sales. As cobalt oxide is a chief ingredient in lithium-ion batteries, the exponential growth in electric vehicle sector is augmenting the market growth.
SWOT Analysis
Strength: Cobalt oxalate has high thermal stability and is resistant to acids and alkalis. It is widely used as a precursor for lithium-ion battery cathodes. Growing demand for lithium-ion batteries from the automotive industry is driving the market. The chemical has high energy density and conductivity which makes it suitable for various end-use industries.
Weakness: Stringent regulations regarding mining activities can hamper the supply of raw materials. Further, volatility in prices of raw materials like cobalt can increase the overall production cost.
Opportunity: Increasing penetration of electric vehicles worldwide provides major growth opportunities. Growing usage of cobalt oxalate in various industries like medical, electronics will open new opportunities. Developing regions like Asia Pacific and South America offer scope for market expansion.
Threats: Health hazards associated with cobalt may lead to substitution by other materials. Supply constraints of raw materials during times of surge in demand can be challenging. Dependence on limited number of countries for cobalt reserves is a threat.
Key Takeaways
The global Cobalt Oxalate Market Share is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing usage of lithium-ion batteries in electric vehicles.
Market size: The cobalt oxalate market size was valued at US$ 792 Mn in 2023 and is projected to reach over US$ 1,150 Mn by 2030.
Regional analysis: Asia Pacific dominates the global market and is expected to grow at the fastest rate during the forecast period. Countries like China, South Korea and Japan are major manufacturers of lithium-ion batteries driving the regional demand.
Key players: 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. These players are focusing on capacity expansions and long term contracts with end users for sustained revenues.
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