Africa set to have continent's first cobalt refinery by end of 2025

Points clés à retenir

The establishment of the cobalt sulfate refinery in Zambia represents a significant step towards diversifying a vital segment of the global battery manufacturing supply chain away from China. Currently, China dominates around 75% of global cobalt refining capacity. While Zambia itself is not a major cobalt producer, its northern neighbor, the Democratic Republic of Congo, accounts for around two-thirds of the world's cobalt supply. However, despite the significant cobalt resources in the region, prices have experienced a sharp decline in recent years. From highs surpassing $80,000 a ton two years ago, cobalt prices have plummeted to around $28,000 per ton on the London Metal Exchange. This drop is primarily attributed to oversupply in the market, posing challenges for investments in the metal. Nonetheless, establishing a cobalt sulfate refinery in Zambia could potentially help stabilize prices and create new opportunities in the cobalt market.