E-Procurement: How Cobalt Demand May Triple by 2030
Supply and Demand in Practice and Procurement Solutions
Procurement experts and purchasers are always keeping a close eye on market shifts that will ultimately affect their prices and bottom line. Making predictions about changing prices is not easy, but watching shifts in demand can help.
Cobalt is a metal commodity that carried so little value in the past that it was left behind or tossed into waste piles. Now, the demand for cobalt has increased dramatically because it is a key component in lithium-ion batteries used for cell phones and electric-vehicle batteries.
One commodities group anticipates the demand for cobalt to triple by 2030. Companies dealing with cobalt are doing everything to focus their efforts there, where they were once quick to focus on other commodities. The increased demand could potentially cause cobalt shortages that will push the value of cobalt even higher.
According to the Wall Street Journal, “cobalt prices have risen 270% on the London Metal Exchange since early 2016,… creating an opening for companies to specialize in a metal once seen as a waste product.” The change in the value of cobalt is a perfect example of shifts in demand and the effect on the entire supply chain.
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