European Union
Cobalt is essential for the EU and its citizens. It has been designated both a critical and strategic raw material.
From defence to electronics, batteries to semiconductors, Europe needs cobalt to keep secure, green, and modern societies functioning.
Europe is already a key player in the global cobalt refining industry, with Finland being the second-largest refining country after China*. Cobalt’s high recyclability further supports the European Union’s circular economy objectives.
Source: Cobalt Market Report 2024
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By 2050, up to 60% of Europe’s cobalt demand is expected to be met through recycled sources.
Additionally, by 2030, Europe’s cobalt industry could add up to 64,000 new jobs, a 135% increase from 2022.
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With projections showing a 350% surge in cobalt demand by 2050, Europe stands at a crossroads.
The right policies are essential to unlock this demand, ensuring that the growth of the cobalt industry translates into high-value, strategic jobs rooted firmly in Europe.
While Europe’s competitors establish high-incentive and low-barrier economies, the European Union has fewer incentives and higher barriers.
If Europe wants to meet the 2030 benchmarks in the Critical Raw Materials Act, as well as Europe’s net-zero goals, the Commission needs to strengthen its industrial policy.
The EU has an opportunity to create a robust policy framework that not only supports the cobalt industry but also drives its growth. Given the current challenging market conditions, the industry requires support.
While the US and other regions have introduced significant financing initiatives to back the sector, the EU has yet to match these efforts in terms of scale and clarity.
Simultaneously, regulatory challenges—primarily related to EU chemicals management—are increasing costs and adding complexity, further hindering an industry already facing difficulties. A more targeted approach would support the way for more investments.
Finally, Europe needs a plan to back its companies operating abroad. In the last 15 years, most investment in new mine capacity has come from outside the EU. The reason? This is partly economic, but also because of reputational and political issues. Political and financial de-risking will be required to support companies investing in jurisdictions like the DRC, Indonesia, Canada and Australia.