Investment Rating - The report rates the cobalt industry as "Overweight" indicating a positive outlook for the sector [3]. Core Insights - The extension of the cobalt export ban by the Democratic Republic of the Congo (DRC) is expected to significantly reduce global cobalt supply, with an estimated 34% decrease in effective supply for 2025, dropping from 282,000 tons to 185,000 tons [3]. - Demand for cobalt is projected to grow steadily, with an expected increase of 4.3% in 2025, reaching 211,000 tons, driven by applications in power batteries and emerging sectors like drones and robotics [3]. - The anticipated tightening of supply is likely to lead to a rise in cobalt prices, which have already rebounded from a low of 159,000 CNY/ton to 261,000 CNY/ton since the start of 2025 [3]. Summary by Sections Supply and Demand Dynamics - The DRC's export ban, initially set for four months starting February 22, 2025, has now been extended by three months, totaling a seven-month suspension of cobalt exports [3]. - The global refined cobalt supply is projected to be 185,000 tons in 2025, down from 282,000 tons, indicating a significant supply constraint [7]. - The demand for cobalt in battery applications is expected to stabilize, with traditional sectors recovering and new sectors providing additional demand [3][7]. Price Outlook - Cobalt prices are expected to continue rising in the short term due to supply constraints, with a potential price range of 230,000 to 240,000 CNY/ton in the near future [3]. - The DRC government's firm stance on supply control suggests that prices will have strong long-term support, with limited chances of a complete lifting of export restrictions [3]. Investment Recommendations - The report suggests focusing on companies with profit elasticity in the cobalt sector, including Luoyang Molybdenum, Huayou Cobalt, and others, as they are likely to benefit from rising cobalt prices [3][8].