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. The prices for cobalt sulphate, as have as well been followed by Benchmark Mineral Intelligence, have been rising over the past years. One of the reasons that has been seen to explain this is the fact that there has as well been an increase in the demand for the lithium ion battery on 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. Looking at the rise in the prices, there has to be a reason to explain this and this is given in a number of versions of the 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.
One of the reasons that has explained this is the fact that there has been as well 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 for cobalt is taken by the battery demand. And as well going by the forecasts and projections that have been released by Benchmark Mineral Intelligence, this demand from this sector is even seen to be ever in the increase, or upward trend. And as a matter of fact, just to stress the significance, this is a subject that has been in the list of issues and topics for discussion in their past inaugural 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 still remained under scrutiny and environmental checks by the authorities in the country, China. Looking at the requirements, these have seen a number introduced such as the installation of measures to ensure that the effects and emissions from the process of manufacture do not endanger the environment. It goes without saying that all these installations will definitely come with costs that will in the end be passed by the manufacturers to the end users or the buyers in the tight margin market we operate and live in.
The other reason that has been seen for the upward pressing of the prices of the cobalt sulphate as a processor material for lithium batteries is the fact of the end of lower cost cobalt in the supply chain.