For the Quarter Ending September 2025
North America
• In the United States, the Cobalt Hydroxide Price Index rose quarter-over-quarter in Q3 2025, driven by surging EV sales.
• Production costs increased due to a 2.6% year-over-year PPI rise in August and 3.0% CPI in September 2025.
• Record-high Electric Vehicle sales in Q3 2025 significantly bolstered Cobalt Hydroxide demand.
• U.S. defense stockpiling initiatives for cobalt intensified during Q3 2025.
• Natural gas feedstock costs eased in September 2025, partially offsetting broader input price pressures.
• Retail sales increased 5.42% year-over-year in September 2025, supporting consumer-driven demand.
• Tight export controls from the Democratic Republic of Congo impacted global cobalt supply in Q3 2025.
• Industrial production showed near-stagnant growth at 0.1% year-over-year in September 2025.
• A 4.3% unemployment rate and declining consumer confidence (94.2) in September 2025 showed mixed signals.
Why did the price of Cobalt Hydroxide change in September 2025 in North America?
• Strong EV sales and U.S. defense stockpiling boosted Cobalt Hydroxide demand in Q3.
• Rising input costs, evidenced by a 2.6% year-over-year PPI increase in August 2025, pressured production.
• Tight export controls from the Democratic Republic of Congo constrained global cobalt supply in Q3 2025.
Europe
• In Germany, the Cobalt Hydroxide Price Index rose quarter-over-quarter in Q3 2025, influenced by global supply constraints.
• Production costs for Cobalt Hydroxide faced upward pressure from rising European electricity prices during Q3 2025.
• Demand for Cobalt Hydroxide was supported by strengthening European EV sales and surging German EV battery capacity in August 2025.
• Germany's Manufacturing Index contracted in Q3 2025, signaling reduced industrial activity and dampening material demand.
• Industrial production declined by 1.0% in September 2025, negatively impacting overall consumption of raw materials.
• Cobalt raw material prices flatlined in Q3 2025, but DRC export controls created underlying cost pressures.
• Retail sales increased by 0.2% in September 2025, while the 6.3% unemployment rate remained stable, affecting demand.
• Consumer prices rose 2.4% and producer prices fell 1.7% in September 2025, impacting operational costs.
• The Cobalt Hydroxide price forecast indicates continued upward pressure from persistent supply constraints.
Why did the price of Cobalt Hydroxide change in September 2025 in Europe?
• Tight DRC export controls provided upward pressure on cobalt prices throughout Q3 2025.
• Rising European electricity prices in Q3 2025 increased Cobalt Hydroxide production costs.
• Strengthening European EV sales in Q3 2025 boosted demand for Cobalt Hydroxide battery materials.
APAC
• China's Cobalt Hydroxide Price Index rose in Q3 2025, driven by tightening supply and costs.
• Production costs rose as Chinese battery makers pushed for higher prices in Q3 2025.
• Global cobalt supply tightened in Q3 2025 from DRC export ban and new quota.
• Demand supported by robust NEV sales; industrial production up 6.5% in Sept 2025.
• Weak consumer demand (CPI -0.3%) and contracting Manufacturing Index in Sept 2025 tempered market.
• Retail sales grew 3.0% in Sept 2025, boosting EV and portable electronics demand.
• Cobalt Hydroxide demand faces headwinds from increased LFP battery adoption in Q3.
• Low inventory persisted as China's cobalt hydroxide imports remained reduced through Q3.
• Weak industrial demand (PPI -2.3%) and 5.2% unemployment in Sept 2025 indicated economic softness.
Why did the price of Cobalt Hydroxide change in September 2025 in APAC?
• Tightening global cobalt supply from DRC export ban and new quota system.
• Chinese battery material makers pushed for higher prices for cobalt-based materials.
• Weak consumer confidence (89.6 index) and contracting manufacturing activity.
