The cobalt oxalate market has witnessed significant growth over the past few years owing to the rising demand for cobalt oxalate from various end-use industries like electrical, automotive, consumer electronics, and battery industry. Cobalt oxalate crystals are yellow to orange in color and are soluble in water. It is used as an intermediate for manufacturing cobalt compounds which find applications in rechargeable batteries, magnetic materials, ceramics, and pigments. The growing demand for lithium-ion batteries from the automotive industry for electric vehicles has been a major demand driver for cobalt-based battery materials like cobalt oxalate.
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, OpenEye Scientific Software, and Dassault Systèmes. These players are focusing on new product development and innovation and partnerships & collaborations to gain a competitive advantage in the market.
The growing sales of electric vehicles provide significant opportunities in the Cobalt Oxalate Market Size. Major automobile companies are developing new EV models to cater to the rising demand. This will boost the consumption of lithium-ion batteries that use cobalt-based battery materials like cobalt oxalate.
North America and Europe dominate the global cobalt oxalate market. However, Asia Pacific is expected to witness the highest growth due to the rising electrical and automotive industries in developing economies like China and India. Manufacturers are expanding their production facilities in these regions to leverage growth opportunities.
Market Drivers
- Rising demand for lithium-ion batteries from the automotive industry driven by electric vehicles. EVs require high-energy and longer life batteries which use cobalt oxalate in their production. This is a major factor driving market growth.
Market Restrains
- Supply risks associated with cobalt which can impact the prices of cobalt oxalate. around 60% of global cobalt supply comes from the Democratic Republic of Congo and any political instability can disrupt supply. This introduces price volatility in the cobalt oxalate market.
Segment Analysis
The Cobalt Oxalate market is dominated by the Battery material sub-segment owing to its usage as the cathode material for lithium-ion batteries. Cobalt Oxalate is widely used in the manufacturing of lithium-ion batteries which finds application in electric vehicles and energy storage solutions. The demand for lithium-ion batteries is growing rapidly due to the increasing adoption of EVs and focus on renewable energy sources which is fueling the growth of the Battery material sub-segment of the Cobalt Oxalate market.
Global Analysis
North America holds the largest share in the global Cobalt Oxalate market due to presence of key battery and electronics manufacturers and significant research and development activities related to batteries in the region. The demand is expected to increase significantly in Asia Pacific during the forecast period driven by growing production of lithium-ion batteries for electric vehicles in China, Japan and South Korea. Countries like China, Japan, and South Korea have emerged as manufacturing hubs for battery materials which is contributing to the growth of the Cobalt Oxalate market in Asia Pacific.
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