Cobalt has been a key ingredient in lithium-ion batteries, especially in cathodes, due to its ability to improve energy density and stability. However, concerns about supply chain ethics, cost, and availability have driven battery makers to seek alternatives. Several metals and technologies are emerging as leading cobalt substitutes or supplements in the EV battery supply chain.
Why find cobalt alternatives?
- Ethical sourcing issues: A large portion of cobalt comes from the Democratic Republic of Congo, where mining faces labor and human rights concerns.
- Cost volatility: Cobalt prices can be volatile, impacting battery costs.
- Supply risk: Limited geographic diversification of cobalt supply.
- Technological innovation: Battery chemistries are evolving to reduce or eliminate cobalt while maintaining performance.
Top cobalt alternatives and their roles
1. Nickel
- Role: High-nickel NMC (nickel-manganese-cobalt) and NCA (nickel-cobalt-aluminum) cathodes reduce cobalt content significantly.
- Advantage: Boosts energy density and lowers cobalt usage.
- Key players: BHP, Vale, Norilsk Nickel.
2. Manganese
- Role: Used in cathodes like lithium manganese oxide (LMO) and low-cobalt NMC chemistries to enhance stability and power.
- Benefit: Low cost and abundant, improves battery safety and lifecycle.
- Key players: South32, Giyani Metals.
3. Iron (LFP – Lithium Iron Phosphate)
- Role: Completely cobalt-free cathode chemistry, popular in EVs for lower cost and safety benefits.
- Tradeoffs: Lower energy density than nickel-based chemistries but excellent cycle life and thermal stability.
- Adoption: Widely used by Chinese EV makers and growing globally.
4. Titanium
- Role: Emerging as a dopant or partial substitute in next-gen cathodes to improve stability and reduce cobalt.
- Research stage: Still largely experimental but promising for future batteries.
5. Aluminum
- Role: Used in NCA cathodes to partially replace cobalt, improving structural stability and lifespan.
- Benefits: Helps reduce cobalt content without sacrificing performance.
6. Silicon (Anode material alternative)
- Note: While not a cathode metal, silicon is a key anode material reducing reliance on graphite and improving battery capacity, indirectly impacting cathode metal demand.
Companies leading cobalt alternative supply
- BHP Group (NYSE: BHP): Large nickel and manganese producer focused on battery materials.
- South32 Limited (ASX: S32): Major manganese supplier with expansion plans in battery metals.
- Albemarle Corporation (NYSE: ALB): Lithium producer also investing in alternative battery chemistries.
- Livent Corporation (NYSE: LTHM): Focus on lithium compounds compatible with low-cobalt cathodes.
- Giyani Metals Corp. (TSX-V: EMM): Developing manganese projects tailored for battery use.
Battery makers reducing cobalt
- CATL: Leading producer of LFP and low-cobalt NMC batteries.
- LG Energy Solution: Developing high-nickel cathodes with reduced cobalt.
- Tesla: Investing heavily in nickel-based cathodes and LFP batteries for standard range vehicles.
Investment implications
- Materials diversification: Investors can reduce cobalt-specific risk by considering nickel, manganese, and iron-focused stocks.
- Technology adoption: Track EV makers’ cathode chemistry choices to anticipate metal demand shifts.
- Sustainability focus: Alternatives help companies meet ESG goals and regulatory scrutiny on sourcing.
Reducing cobalt dependence is a critical trend shaping the EV battery supply chain. Nickel, manganese, iron, and emerging metals offer pathways to more ethical, affordable, and sustainable batteries powering the electric future.