The Facts on the Prices of Cobalt Sulphate and the Stability of the Metal
According to reports that have been dated, it is a fact that the prices of one of the most common lithium battery processor materials, cobalt sulphate, has been on the rise by some good percentages over the recent past. 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. The Chinese market has been the one that has seen the most marked rise in the prices of cobalt sulphate with the prices going over $13000 for a tonne. The reasons given for the increase of the prices, there are a number of these reasons. Below are some of the reasons why you will see this stickiness in the rise of the prices of the cobalt sulphate as a material for the making of lithium battery.
First and foremost, one of the reasons is the fact that there has been a steady increase in the demand for the Lithium ion battery cathode. The lithium ion battery manufacturers and their demand for this is the number one reason explaining this surge in the prices. Going by statistical reports and records, the world market and demand for the cobalt sulphate, the largest share of the demand is taken by the lithium ion battery manufacturers. And forecasts by Benchmark Mineral Intelligence indicate that this demand is even going to increase over time. By far and large, this is one issue that has been on their list of items and subjects of discussion in their past conferences.
The other reason that has been seen to explain the rise in the prices of the sulphate has been that of the fact that the refining capacity has been restricted by environmental limitations. Most of the refiners in China have quite been under some thorough scrutiny and subject to a raft of 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. As a matter of fact, all these necessary installations will come with costs that the manufacturers will have passed over to the consumers in the all-too tight economy.
One more reason why this has been, the rise in the prices of the commodity, cobalt sulphate, has been the ending of the lower cost cobalt in the supply chain.