The cobalt market is facing another downturn, but industry experts argue that this time, the dynamics are different. Unlike previous busts driven by oversupply and weak demand, the current slump is influenced by a combination of technological advancements, shifting supply chains, and evolving consumer preferences.

Cobalt, a key component in lithium-ion batteries used in electric vehicles (EVs) and electronics, has seen its price drop by 30% over the past year. Analysts attribute this decline to increased recycling efforts, the development of cobalt-free batteries, and geopolitical shifts in mining operations.

“This is not just another cyclical downturn,” said Andy Home, a commodities analyst. “The cobalt market is undergoing a structural transformation that could reshape the industry for years to come.”