Following explosive growth over the past year and a half, cobalt prices will moderate over the next five years as a result of additional supply, recycling and substitution, Chris Berry, founder and president of research and investing firm House Mountain Partners, told Metal Bulletin sister title American Metal Market.
Metal Bulletin’s low-grade free-market cobalt price
, used as a benchmark by the industry, was assessed at $35.75-37.30 per lb in-warehouse on Wednesday January 10, more than double the $14.25-14.95 per lb recorded at the end of 2016.
Substitution is one of the main factors behind the price stabilization, with companies developing lithium-ion batteries that contain more nickel and less cobalt than previous chemistries, Berry said.
“When you look at these minor metals, anytime there’s...