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According to Mining News Pro - The number represents a 20% jump compared to 142,000 tonnes produced in 2020.

The Democratic Republic of the Congo (DRC) continued to be the world’s leading source of mined cobalt, supplying more than 70% of world cobalt mine production. DRC was followed by Russia (7,600 tonnes) and Australia (5,600 tonnes).

“The increase in raw materials feed was mainly from increased production at existing operations, although new production and restarts at suspended operations also contributed to supply,” the report reads.

China was the world’s leading producer of refined cobalt and also the leading consumer, with more than 80% of its consumption being used by the rechargeable battery industry.

The cobalt price rose by 119% in 2021 and could climb to new highs through 2022 and beyond, according to the chief executive officer of diversified mining company Eurasian Resources Group (ERG).

“While it seems ‘obvious’ to us today that much of the tightness is underscored by stellar demand growth from the EV segment,” Benedikt Sobotka said, “just a year ago, most of us would have sniggered with disbelief at the prospect of EV sales more than doubling in 2021.”

“Yet it is now a reality, and the pace of EV adoption shows few signs of losing momentum, being supported by the global transition to a greener future,” he said.

Cobalt Rally Will Extend Into 2022 on Demand Surge, Major Trader Says

Cobalt has the potential to extend gains in 2022 after doubling in price this year due to growing appetite for the metal that’s vital for making rechargeable batteries in electric vehicles, according to Marubeni Corp., a major Japanese trader.

“Demand is growing at a faster pace than anticipated,” Yoichiro Suga, Marubeni’s non-ferrous metals and materials trading general manager, said in an interview this week. Strength in demand for electric vehicles “is the biggest factor” that’s seen prices supported, he said.

There have been no factors that would trigger a significant declines in prices, with port congestion continuing and major users sticking to output plans. That means the price is expected to “rise moderately,” he said.

The global push toward a greener future is firing up demand for battery metals such as lithium, cobalt and nickel, at a time of constrained supply exacerbated by the pandemic. The clean energy transition to combat climate change could unleash unprecedented metals demand in coming decades, the International Monetary Fund said this month.

For the near-term outlook, passenger EV sales are set to more than quadruple to 14 million units in 2025, representing 16% of the global market, according to Bloomberg NEF. The world’s biggest carmaker, Toyota Motor Corp., has also laid out a plan to invest 4 trillion yen ($35 billion) to supercharge its EV push, with a target to sell 3.5 million units annually by the end of the decade.