Rising global electric vehicle (EV) sales and cobalt supply constraints drove cobalt prices higher in the second half of 2021. Cobalt is an essential component of batteries that power EVs. According to the International Energy Agency (IEA), electric car sales will more than double to 6.6 million in 2021, representing close to 9% of the global automobile market.
In addition, the Biden administration's plan to invoke the Defense Production Act to promote domestic production of minerals required to make batteries for EVs and long-term energy storage should further fuel the cobalt industry’s growth. Benchmark Mineral Intelligence forecasts a 13% CAGR in demand for cobalt for the next 10 years.
