A fall in cobalt feedstock imports to China in August on lower logistics efficiency at Durban port in South Africa coupled with firm demand from the downstream new energy vehicle and 5G telecommunication sectors have bolstered cobalt prices…Argus assessed prices for 99.8pc grade cobalt metal higher at 366-386 yuan/kg ($56.3-59.4/kg) ex-works today, up by 39pc since the start of 2021. Import prices for 30pc min grade cobalt hydroxide were assessed at $21.20-21.60/lb cif China on 21 September, up by 67pc since early this year…Low logistics efficiency at Durban port caused by the Covid-19 pandemic coupled with a civil unrest in the country from early July led to port congestions and shipment delays and a decline in China's August cobalt feedstock imports…Most market participants say it is difficult for feedstock imports to China to rise in September. "Logistics at Durban port was severely congested when the unrest in South Africa broke out so our shipment delays in August was more serious than July," said a major cobalt feedstock supplier…Demand from the computer, communication and consumer electronics (3C) and electric vehicle (EV) sectors remained strong in the first eight months of this year, although the 3C sector showed signs of weakening from the second quarter…Domestic mobile phone shipments increased by 12.3pc from a year earlier to 227mn units during January-August, including 168mn of 5G phone shipments, which rose by 79.7pc on the year, according to the China Academy of Information and Communications Technology…January-August NEV output increased by 193pc on the year to 1.813mn, with sales up by 194pc to 1.799mn units, according to the China Association of Automobile Manufacturers…Production and installed volumes of ternary batteries in the eight-month period hit 53.2GWh and 40.9GWh, rising by 137.2pc and 111.2pc, respectively, on the year and accounting for 47.9pc and 53.8pc of total battery volumes.

Although the Democratic Republic of Congo (DRC) will remain the leading producer of cobalt in the coming years, investments are likely to shift to Australia, which is seen as a “bright spot” for miners and offtakers seeking to avoid human rights and environmental risks associated with cobalt mining in the DRC. “Australia represents a much lower risk environment if the EU [European Union] seeks to reduce its dependency on the DRC for cobalt,” research firm Fitch Solutions said on Thursday. Australia’s mining regulations prioritise sustainable extractive processes, which Fitch said would prove appealing for countries with strong environmental standards…The EU, for instance, was looking to secure mineral sourcing through strategic international partnership. The EU would need five times more cobalt by 2030 to accommodate rising demand and 15 times more by 2050…Although Australia’s current output pales before that of the DRC, having produced only 5 700 t of cobalt concentrate last year, compared with the DRC’s 95 000 t, Australia holds the world’s second biggest cobalt resources, implying much room for production growth over coming years…Fitch said that the cobalt industry was set to receive a “significant boost” from the global shift to the green economy, owing to the ferromagnetic blue metal being a key component of rechargeable batteries and being “valued for its stability”, among other features. The metal’s main use today is in the precursors and cathodes of rechargeable batteries, which currently account for 56% of total consumptions as of this year…The agency noted that battery makers were striving to reduce the cobalt content in batteries, owing to supply issues and environmental, social and governance concerns, instead opting for nickel-rich cathode chemistries. However, substation for cobalt could result in a loss of product performance or an increase in costs – both of which would continue to bolster cobalt demand…While the DRC would remain the biggest global supplier of mined cobalt, China would remain the key refiner over the coming decades. Fitch noted that there were new cobalt refining projects under way globally that would work to reduce China's market share to a limited extent. China accounts for 66% of global refined cobalt output, followed by Finland (10%).

Daimler AG will team up with Stellantis NV and TotalEnergies SE to boost the scale of their European battery venture to more than 7 billion euros ($8.2 billion) and secure supplies for electric Mercedes-Benz cars…The world’s biggest luxury-car maker will take a 33% stake in battery manufacturer Automotive Cells Company, whose projects will be financed through equity, debt and subsidies, Daimler said Friday. ACC aims for capacity of at least 120 gigawatt hours in Europe by the end of the decade, more than double the amount the two founding partners initially laid out. The venture, which has held talks with Stellantis’s French rival, Renault SA, is open to adding more partners. Mercedes will invest roughly 500 million euros next year and expects its total spending to stay below 1 billion euros…Daimler’s move is the latest step by the maker of the EQS sedan to accelerate toward fully electric vehicles…In Europe, EVs accounted for 17% of sales during the first half.