Cobalt stocks fall at Wuxi Exchange in scramble to find electric vehicle battery materials
Cobalt stock prices on China's Wuxi Exchange plummeted late in January. Traders attribute the fall to shortages of the material used in electric vehicle batteries in the world's largest consumer.
More than 3250
Supplies began to tighten in the last year, after the Democratic Republic of Congo (DRC) suspended cobalt imports in February 2025. Prices had dropped to nine-year levels around $10 per pound or $22,000 per ton because of surpluses.
The majority of Congo's cobalt exports is to China.
Congo's cobalt comes from the copper industry and is used as a cobalt sulphate in lithium-ion batteries. The mineral is estimated to be 70% of global mine supply in Central Africa, with more than 288,000 metric tons of production this year.
The suspension was in effect until Congo introduced export quotas last October 16th, when they launched a system that allocated 18,125 tons to the fourth quarter and capped annual exports from 2026 at 96.600?tons.
The combination of the cap on exports and the long preparations for the implementation of a new quota-based system has led to shortages.
Since Congo banned exports of cobalt, the price has increased by 160%, to $26 per lb
The price of cobalt hydroxide can be expressed as a percent of the metal price
- also known as payables. The traders say that payables are regularly quoted at 100% records, which is a situation they have never seen before. In January 2025, payables for cobalt hydroxide were at 55%.
Ambatovy, a miner in Madagascar, has suspended its operations due to the damage caused to their facilities by a cyclone that hit last week.
Ambatovy is owned by Sumitomo and the state-owned Korea Mine Rehabilitation and Mineral Resources Corporation. In 2024, it produced 28,000 tons?of nickel and 2,500 tons?of cobalt.
In a press release issued this week, Sherritt, a Canadian company, said that it had reduced its operations at a joint venture in Moa (Cuba) due to fuel shortages in the country.
Sherritt stated that there was no immediate impact on the operations at Fort Saskatchewan in Alberta (Canada).
The refinery continues to produce finished cobalt and nickel for sale. It is estimated that the feedstock it has for this production will last until mid-April.
(source: Reuters)
