Director General Dinah McLeod discusses the findings of the groundbreaking “Cobalt 2050” study and conversations at the UN General Assembly - and explains why the time to unlock the potential of cobalt in the energy transition is now.
Dear colleagues,
From discussions at the UN General Assembly to our latest research study, it’s clear: cobalt’s role in the energy transition is more critical than ever.
The publication of our “Cobalt 2050: Unlocking Potential for a Net-Zero Future” study, developed by BloombergNEF, is a critical piece of research – in fact, the first of its kind for any energy transition metal – showing how cobalt will be essential for reaching the global 2050 net-zero target.
I was honoured to be joined at the launch webinar on 8 October by Kwasi Ampofo, Head of Metals and Mining at BloombergNEF and the author of the report, and Jörgen Sandström, Head of Transforming Industrial Ecosystems at the World Economic Forum. It was a fascinating discussion with lots of insightful questions from participants. If you missed it, don’t worry - you can catch the recording on our website.
A few findings stood out to me that highlight the scale of opportunity and challenge ahead:
- Between now and 2050, 5.5 million tons of cobalt is needed to power the battery sector alone. This confirms the EV market - and then the stationary storage market - will grow in the years to come.
- Non-battery sectors like aerospace and hard metals also show strong growth.
- At least $1.7bn in new investment is required to meet the global demand for net-zero. While this looks like a reasonable amount, it’s clear that this investment has to happen now if countries are to achieve competitiveness and secure cobalt supplies.
We’re excited to continue the conversation about “Cobalt 2050,” so please reach out with any thoughts or questions. I’d also like to thank Cobalt Institute members for their support of this project – it’s testament to the industry’s acknowledgement of its responsibility to help achieve the energy transition in a sustainable and responsible manner.
The fact is, this research is both timely and needed. In September, I was at the UN General Assembly, where climate was top of mind for everyone. It was great to see critical minerals like cobalt feature prominently in discussions about tackling climate change, but we need to do more than talk - we need to take action now to fully unlock cobalt’s potential.
For example, decarbonising road transport is a huge priority - transport makes up 30% of emissions in the US and a quarter in the EU. Scaling up EV adoption is essential, and cobalt plays a key role here. Despite the current market headwinds facing the EV industry, it’s crucial to reframe the issue: the climate emergency demands urgent action and electrifying road transport is critical.
That’s why I’m so glad that, as the Cobalt 2050 report says, batteries used in all electric vehicles will displace 23 million barrels of oil per day by 2040, preventing 2.7 gigatons of CO2 emissions in the same year.
Cobalt’s contributions go beyond EVs. It provides range, safety and durability for batteries and is infinitely recyclable, supporting the circular economy. Its presence in batteries also makes recycling economically viable. Additionally, cobalt is driving innovation in new technologies, including defence, space exploration and AI, solidifying its role in the energy transition.
As “Cobalt 2050” makes clear, we urgently need capital investment, new mining projects and policies that encourage demand, competitiveness and recycling. The time to act is now.
Yours,
Dinah
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MARKET REPORTS
Quarterly Market Report Q3 2024
Read our latest cobalt market analysis to find out about significant developments across the cobalt supply, demand and trade landscapes.
RESOURCES
Read our groundbreaking new study revealing that cobalt is indispensable to achieving the global 2050 net-zero target. You can also watch a recording of the launch webinar featuring Dinah McLeod, Kwasi Ampofo and Jorgen Sandstrom.
The recently published Draghi report lays out a roadmap for strengthening the EU’s industrial competitiveness, with a clear focus on securing critical raw materials like cobalt. This Cobalt Institute blog explores these recommendations and their potential impact on the cobalt industry.
Cobalt Institute Head of Responsible Sourcing and Sustainability, Susannah McLaren, shares her insights on the UN's seven key principles and potential implications for the cobalt industry.
The European Critical Raw Materials Act (CRMA) is set to reshape the cobalt industry. Alec Popper, Cobalt Institute Responsible Sourcing and Sustainability Officer, explains the CRMA’s impact on the cobalt value chain.
EVENTS
- 14 November, online
Cobalt for the Energy Transition: Cobalt Institute’s Decarbonisation Pathways Report
This webinar will offer a vision of the cobalt industry’s carbon footprint between 2023 and 2050, the level to which it is possible to decarbonise in that time, the concrete actions that must be taken in order to decarbonise and the sort of investment needed to facilitate this, and the framework conditions required to complete the process of decarbonisation.
- 19 November, Brussels
Taking our groundbreaking “Cobalt 2050” study as a starting point, an expert panel of policymakers and industry leaders will discuss how cobalt and critical raw materials support the EU’s climate goals, its industrial strategy, and its long-term competitive edge. With the EU’s new priorities for 2024-2029 as a backdrop, the discussion will focus on how strategic use of critical metals can inform EU policy, drive the green transition and ensure that Europe maintains its industrial competitiveness.
- 20 November, online
Decarbonising Transportation: The Role of Cobalt-Containing Battery Chemistries
Join this exclusive Minviro webinar as we explore the future of sustainable transportation and the critical role cobalt-containing battery chemistries play in reducing the carbon footprint. The webinar will dive into how material sourcing, energy density, and light-weighting can influence the carbon footprint of battery production as well as during the use phase. Speakers will share key insights and reflections from the recent LCA results Minviro delivered to the Cobalt Institute.
KAYNAK
https://www.linkedin.com/pulse/issue-62024-cobalt-institute-rseoe/
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