Core Viewpoint - The recent fluctuations in cobalt prices are closely linked to policy adjustments in the Democratic Republic of Congo (DRC), which significantly impact domestic cobalt-related industries and listed companies [3][12]. Group 1: Cobalt Price Trends - As of March 10, the average price of domestic cobalt reached 223,000 yuan per ton, marking a cumulative increase of 40.25% since the low point on February 24 [2]. - The cobalt industry has experienced a continuous decline over the past three years, with prices dropping approximately 80% [9]. - The DRC announced a four-month suspension of cobalt exports on February 24, 2025, to address the oversupply in the global cobalt market, which could lead to a 25% reduction in global cobalt supply [8][13]. Group 2: Impact on Industries - The increase in cobalt prices is expected to raise the cost of ternary power batteries for electric vehicles by approximately 1,000 yuan for every 60% rise in cobalt prices [4]. - The supply-demand gap in the cobalt industry could reach 25%, which is significant enough to drive up commodity prices [7]. - The price of cobalt sulfate, used in ternary materials, surged from 26.55 yuan per kilogram to 42.05 yuan in just ten days, reflecting a 58.4% increase [15]. Group 3: Market Reactions - From February 25 to March 10, the average stock price increase for four listed companies in the cobalt sector reached 21.41%, leading all sub-sectors [21]. - Companies like Luoyang Molybdenum Co., which is the largest cobalt producer globally, reported an 8.6% increase in stock price and are actively communicating with the DRC government regarding policy changes [22]. - The rising cobalt prices have also affected the recycling market for used batteries, with significant price increases reported for scrap batteries [18]. Group 4: Company Performance and Profitability - Companies such as Hanrui Cobalt and Tengyuan Cobalt are expected to benefit from the rising prices, as their profitability is closely tied to the prices of cobalt products [24]. - However, the revenue contribution from cobalt-related businesses is relatively low for many A-share companies, with cobalt products accounting for only 36.08% of Tengyuan Cobalt's revenue [25]. - The varying levels of benefit from the price increases will depend on each company's position in the supply chain and revenue structure [26].