What it is
Cobalt is a hard, magnetic metal used in lithium-ion battery cathodes (NMC, NCA), superalloys for jet engines, and medical implants.
Why it matters
Around 70% of mined cobalt comes from DR Congo and around 75% of refining happens in China, so supply risk and ESG risk are both high.
Circular challenges
Whether cobalt re-enters the economy at end-of-life is mostly settled at the design stage. These are the recurring blockers.
Cathode chemistry shifts
Carmakers are moving toward LFP (no cobalt) for entry vehicles, making cobalt streams less predictable for recyclers.
Hydrometallurgy gap
Recovering cobalt from spent cells needs hydro- or pyrometallurgical refining capacity that the EU is only now beginning to build.
Stockpile in use
Most cobalt is locked inside vehicles and devices with 10–15-year lifespans; secondary supply lags primary demand by a decade.