Cobalt Prices Hit Lowest Point Since 2016 Amid High Production Levels

Cobalt prices have fallen to their lowest levels in nearly a decade, with the battery material trading at $11.02 per pound as of January 23. The price drop reflects record-high production levels, which continue to exert downward pressure on the market.

The world’s largest cobalt producer, CMOC Group, achieved a record output of 114,165 tons in 2024 and has announced plans to maintain similar production levels through 2025. The company’s guidance for 2025 targets production between 100,000 and 120,000 tons. CMOC’s operations in Africa, particularly two key mines, have been critical in sustaining these high output levels. Notably, the company exceeded its 2024 production forecast by the end of September last year.

Cobalt is primarily mined as a by-product of copper extraction, an area where CMOC remains optimistic. The company has set its 2025 copper production target at 600,000 to 660,000 tons, aligning closely with its 2024 output of approximately 650,000 tons.