Cobalt Sulphate-What about the ever Increasing Prices in spite of the Stability of the Metal
Dated reports have indicated that the prices of one of the most common lithium battery processor materials, cobalt sulphate, has been on a continued surge by some rather significant percentages. As have as well been followed by Benchmark Mineral Intelligence, the prices for cobalt sulphate have been on the rise over the past years. This has been in a way attributed to the fact that there has as well been an increasing on the demand of lithium ion battery in the industrial sector. It is in the Chinese market that we have seen such a significant increase in the prices of the cobalt sulphate with the prices averaging way over $13000 for every tonne of the material. And talking of the price increases, of course there will be reasons for this and these are as well quite varied. Take a look at some of the reasons that have basically served to explain the stickiness of the prices of cobalt sulphate as a processor material for the making of lithium based ion batteries.
Top of the reasons given for this is the fact that there has as well been a steady increase in the demand for the lithium ion battery cathode. One of the top reasons for this has been that of the demand that has been seen with the manufacturers for the lithium ion battery cathode. As a matter of fact, the largest share of the market and demand for cobalt sulphate is actually taken by the demand for this by the lithium ion battery manufacturing sector. And forecasts by Benchmark Mineral Intelligence indicate that this demand is even going to increase over time. This is actually an issue that has been in their discussion in their inaugural conferences.
One other reason that has been tendered to explain this trend and rise in the demand for this product has been that of the refining capacity that has been in a way limited by environmental restrictions. A number of the refiners in China have been quite a lot scrutiny and environmental checks from the Chinese authorities. In a number of the cases, these requirements have seen a raft of measures brought in and these have all been such as to ensure that the effects and emissions of the manufacturing process do not cause much harm to the environment. All these installations will definitely come in costs that will eventually passed on to the end users in this tight economy.
The other reason that has somewhat led to the press in the upward trend of the prices of cobalt sulphate has been the end of the lower cost cobalt in the chain of supply.