The cobalt oxalate market has been growing at a fast pace mainly driven by the growing demand from battery applications. Cobalt oxalate has several advantages when used as cathode materials in lithium-ion batteries including high structural stability, good rate capability, and safety. Lithium-ion batteries containing cobalt oxalate cathodes can deliver high energy density and have found widespread adoption in electric vehicles, consumer electronics, and energy storage systems. Rising demand for these end-use applications is expected to drive the consumption of cobalt oxalate over the coming years.

The Global cobalt oxalate market is estimated to be valued at US$ 912.39 Mn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the cobalt oxalate market are BIOVIA, Chemical Computing Group, Agilent Technologies, Schrödinger, PerkinElmer, CambridgeSoft, ChemAxon, Molecular Discovery, and OpenEye Scientific Software. These companies are focusing on developing advanced cobalt oxalate materials through innovative synthesis techniques to improve the performance of lithium-ion batteries.

The Cobalt Oxalate Market Trends offers lucrative growth opportunities owing to the rising demand for cobalt oxalate from the rapidly expanding electric vehicle industry. With global EV sales projected to grow at a CAGR of over 30% during 2022-2030, consumption of cobalt oxalate as a cathode material is also expected to witness strong growth.

Major players in the cobalt oxalate market are investing in global expansion strategies to leverage growth opportunities in emerging markets such as Asia Pacific and Latin America. For instance, in 2021, Umicore expanded its cobalt recycling facility in Finland and cobalt smelting capacity in Norway and Belgium to cater to the rising demand from international clients.

Market Drivers:

– Growing demand for electric vehicles: Rising sales of electric vehicles driven by stricter emission regulations is a major driver for the cobalt oxalate market. Cobalt oxalate performs efficiently as a cathode material in lithium-ion batteries used in EVs.

– Increasing penetration of consumer electronics: Surging demand for smartphones, laptops, and other portable consumer devices is propelling the need for high-capacity batteries containing cobalt oxalate.

Market Restrain:

– Volatility in cobalt prices: Cobalt is primarily mined as a byproduct of copper and nickel. Its prices witness high fluctuations depending on the supply and demand forces of copper and nickel markets. Unstable cobalt prices pose challenges for downstream cobalt oxalate manufacturers.

– Environmental concerns over cobalt mining: Toxicities associated with cobalt mining and refining can degrade the environment if not managed properly. Stringent regulations and operating costs for implementing eco-friendly practices can restrain market growth.

Segment Analysis

The cobalt oxalate market is dominated by the electroplating sub-segment. Cobalt oxalate is widely used in the electroplating industry as it provides a protective and decorative cobalt coating on automotive parts, electronic components, and household appliances. The electroplating sub-segment accounts for over 35% of the total cobalt oxalate market share due to the massive demand for corrosion protection on metal surfaces from the automotive and electronics industries.

Global Analysis

The Asia Pacific region is the fastest growing as well as the dominating region in the cobalt oxalate market. The growth in the region is driven by countries like China, Japan, and India. The availability of raw materials, cheap labor, and growth of end-use industries such as automotive, electronics are driving the demand for cobalt oxalate in the region. China dominates the global demand due to the presence of a large automotive industry in the country. The increasing consumer electronics industry is further expected to propel the regional cobalt oxalate market during the forecast period.

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