This week has witnessed a remarkable surge in cobalt prices, with the spot price holding steady at 56,290 USD per metric ton as of February 12, 2026, marking an astounding 161.21% year-over-year increase according to Trading Economics. The market remains volatile, driven by geopolitical tensions and escalating demand for electric vehicles (EVs) and energy storage solutions.
Market Action
Cobalt’s persistent upward trajectory can be attributed to supply constraints and robust demand. The price of cobalt hydroxide, a key component for battery production, rose by 10 cents per pound over the past week to $25.80/lb CIF China as reported by S&P Global. This reflects the broader trend of increasing prices across various cobalt products, underscoring the supply-demand imbalance.
Analysis
The surge in cobalt prices is largely influenced by geopolitical developments, particularly in the Democratic Republic of Congo (DRC), which is responsible for a significant portion of global cobalt production. Recent concerns over possible changes in export policies and quotas have fueled market uncertainty according to International Banker. Additionally, Indonesia, contributing 18.3% to global cobalt production in 2025, faces potential challenges from proposed reclassification and royalties, further tightening supply as noted by S&P Global.
Context
The cobalt market’s volatility is compounded by the rapidly growing demand for EVs and energy storage systems. As automakers intensify their shift towards electrification, the need for cobalt as a critical battery component continues to rise. The cobalt supply-demand gap is projected to widen, with demand for intermediates estimated at approximately 51,000 metric tons, compared to an available supply of only 30,000 metric tons into China as per Metal.com.
Outlook
Looking ahead, market participants should monitor geopolitical developments in cobalt-producing regions, particularly the DRC and Indonesia, for potential impacts on supply chains. Additionally, the ongoing efforts by countries like the United States to secure and stabilize their cobalt supply chains, exemplified by a recent $12 billion memorandum of understanding with Glencore, could influence future market dynamics according to Fastmarkets.
Investors and industry stakeholders should remain vigilant for further announcements regarding export regulations and supply agreements, which could significantly influence cobalt prices in the coming months. While the current market environment presents opportunities, it also poses significant risks, underscoring the importance of strategic planning and risk management.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Market conditions and geopolitical developments can impact commodity prices, and readers should conduct their own research or consult with a financial advisor before making investment decisions.
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Investment Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or trading advice. The content should not be construed as a recommendation to buy, sell, or hold any security or commodity. Past performance is not indicative of future results. Mining investments carry significant risks, including the potential loss of principal. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. MineListings.com and its authors may hold positions in securities mentioned in this article.
