Investment Rating - The report maintains an investment rating of "Outperform the Market - A" for the cobalt industry [5]. Core Viewpoints - The cobalt market is experiencing a supply-driven price increase, with significant price recovery following the export ban from the Democratic Republic of Congo (DRC) [1][4]. - The DRC's export ban, effective from February 22, 2025, aims to reduce historical inventory and stabilize cobalt prices, which had previously dropped due to oversupply [2][45]. - The demand for cobalt is expected to grow, driven by the electric vehicle (EV) sector and advancements in consumer electronics, with cobalt consumption projected to reach approximately 222,000 tons globally in 2024 [3][19]. Summary by Sections 1. Cobalt: A Strategic Battery Metal - Cobalt is recognized for its high melting point, magnetic properties, and unique catalytic performance, making it essential in battery applications [1][15]. - The price of cobalt has undergone three cycles of increase and decrease since 2017, with the current cycle being primarily supply-driven [13][14]. 2. Cobalt Raw Material Supply - Global cobalt reserves are concentrated in the DRC, which is the largest producer, contributing approximately 75.9% of the global cobalt output in 2024 [21][22]. - The DRC's export ban is expected to impact around 128,000 tons of global cobalt supply over seven months, tightening the market and potentially increasing prices [45][47]. 3. Demand for Cobalt - In 2024, the global cobalt consumption is projected to be about 222,000 tons, with electric vehicles accounting for 43% and consumer electronics for 30% of the demand [3][19]. - The demand for cobalt in high-temperature alloys is also expected to grow, particularly in aerospace and military applications [3][19]. 4. Price Outlook - Following the DRC's export ban, imports of cobalt intermediate products into China have significantly decreased, indicating a tightening supply situation [4][9]. - The report anticipates further price increases for cobalt as imports remain low and demand recovers in the latter half of 2025 [4][9]. 5. Key Companies to Watch - Major players in the cobalt industry include Luoyang Molybdenum, which is the largest cobalt supplier globally, and other companies like Huayou Cobalt and Greeenmei, which are also significant contributors to cobalt production [6][20][41].