Cobalt, with the chemical symbol Co, is a ferromagnetic metal whose surface is silvery-white with a slight pinkish tint. It has a melting point of 1,493°C and a specific gravity of 8.9; it is relatively hard yet brittle. In terms of hardness, tensile strength, machinability, thermodynamic properties, and electrochemical behavior, cobalt is similar to iron and nickel. When heated to 1,150°C, its magnetism disappears. These characteristics make cobalt an essential material for producing heat-resistant alloys, cemented carbides, corrosion-resistant alloys, and magnetic alloys, and it is widely used in the aerospace, aviation, electrical appliance, mechanical engineering, chemical, and ceramic industries. Among these, lithium cobalt oxide—owing to its outstanding overall performance, including high specific capacity and structural stability—is extensively employed as a cathode material in lithium-ion batteries. Furthermore, since cobalt oxide exhibits an electrical conductivity more than 100 times higher than that of nickel compounds, it is widely used as an additive in nickel-cadmium and nickel-metal hydride batteries.

Table: Applications of Cobalt

Data source: Online resources

Since most cobalt resources are found in association with copper-cobalt ores, nickel-cobalt ores, arsenic-cobalt ores, and pyrite deposits—and independent cobalt minerals are extremely rare—cobalt is a scarce minor metal resource compared to other nonferrous metals. It is often referred to as “the MSG of industry” and “the teeth of industry.”

Figure: Process Diagram for Cobalt Mining and Refining

Source: Huayou Cobalt’s Prospectus

The average cobalt content in the Earth's crust is 0.001%. Cobalt is relatively abundant in the oceans, with total reserves estimated at about 2.3 billion tons. Currently, nearly a hundred cobalt-bearing minerals are known to exist in nature; however, there is no standalone cobalt mineral. Most cobalt occurs as a byproduct in metallic ore deposits such as those of copper and nickel, and its production is heavily influenced by the output of copper-nickel ores. According to data from the U.S. Geological Survey (USGS), global cobalt reserves in 2015 were 7.1 million tons, slightly lower than the 7.2 million-ton level recorded in 2014. Among these reserves, the Democratic Republic of the Congo holds 3.4 million tons, accounting for 48% of the world’s total cobalt reserves and ranking first globally. The remaining countries—Australia, Cuba, Zambia, Russia, Canada, and New Caledonia—follow in order, and their combined cobalt reserves account for approximately 84% of the world’s total reserves.

Figure: Regional Distribution of Global Cobalt Reserves in 2015 (%)

Source: USGS

In contrast, China has very low reserves of cobalt resources. In 2015, the country’s reserves stood at only 80,000 tons, accounting for just 1% of the world’s total reserves. It is classified as a country with scarce cobalt resources, and its resource grade is low, averaging 0.02%. This is lower than the average grade of Australia’s major nickel-cobalt deposits (0.07%), Canada’s sulfide copper-nickel deposits (0.04%-0.1%), and Congo’s copper-cobalt deposits (0.1%-0.5%).

On the other hand, China is also a major player in cobalt refining and cobalt utilization. In recent years, the widespread adoption of hydrometallurgical technologies for cobalt has significantly enhanced China’s position in the global cobalt industry, enabling China’s refined cobalt product series to reach world-class advanced levels. As a result, China has transformed from a past importer of refined cobalt into an exporter. In 2015, China’s output of refined cobalt reached 48,700 tons, accounting for 49.7% of the global total; other major producers included Finland, Switzerland, Belgium, and others, in that order.

Table: Statistics on Major Cobalt Refining Countries in 2015

Source: CDI

Since the world’s primary sources of refined cobalt concentrate are concentrated in regions such as the Democratic Republic of the Congo, Canada, Cuba, Australia, Russia, Madagascar, and Brazil—and since refining capacity for cobalt, aside from some facilities that are integrated with concentrate production, is often located close to consumer markets—global trade flows of cobalt concentrate from producing regions to refining centers are both essential and substantial in scale. Looking at global cobalt trade flows, a global pattern has essentially taken shape: "Africa mines the ore, and China refines it."

Figure: Global Cobalt Trade Landscape

Source: Antaike