Indonesia emerged as the second largest producer of cobalt, overtaking established producers like Australia and The Philippines with 5% of the supply in 2022, according to a report from UK-based Cobalt Institute. 

The report, issued on May 10, 2023, stated that Indonesia became a key growth market for cobalt, with cobalt-containing batteries maintaining its strong share in the Electric Vehicle (EV) Market.  

“The cobalt industry is optimistic the cobalt market will continue to grow in the coming years, driven by the success of cobalt’s use in superalloys and hard metals, and particularly in EVs. Cobalt batteries are key for EVs safety, performance and stability – a factor that will continue to define consumer preference in Europe and Noth America,” said Caroline Braibant, Interim Director General at the Cobalt Institute. 

According to the report, Indonesia has the potential to increase cobalt production by 10 times by 2030, with new projects being announced regularly. The Democratic Republic of Congo maintained a steady share of 73% of production. 

Indonesia’s mining and metal industries have been growing rapidly in recent years due to the country’s success in drawing foreign investments, mainly from China. This is in part thanks to the country’s ban on the export of some raw minerals, particularly nickel, which is a key component in the production of EV batteries.  

The sector looks set to continue growing rapidly if the market is any indication. Initial Public Offering (IPO) in the Jakarta Stock Exchange has already beaten some major listing venues in total funds raised during the first quarter, with US$1.45 billion in IPO proceeds between January and March – exceeding that of Tokyo and London.  

The report further stated that cobalt demand maintained an annual growth of 13% in 2022, reaching 187 kilotons. The cobalt market prospects remain robust as cobalt demand is set to double by 2030, growing at a 10% annual rate.