Copper and Cobalt Prices Soar Amid Electrification Boom

Copper and cobalt prices have surged due to increased demand from electric vehicles, AI, and power infrastructure development. Copper prices rose 45.35% year-over-year to $14,455 per ton, while cobalt prices jumped 56.74% to $53.62 per kg.

The price increases are attributed to both structural and temporary factors. The flow of electrification associated with decarbonization is a key driver, as copper and cobalt are essential metals for this process. Copper is used in wiring, while cobalt is crucial for NCM and NCA batteries.

A temporary shortage of supply also contributed to the price increase. Heavy rain and snow in Chile damaged power transmission facilities, affecting mining operations. In Africa, the Democratic Republic of Congo's export ban policy has driven up cobalt prices.

The Korean industry is closely monitoring the impact of rising raw material prices on domestic products. An official from the battery industry noted that product prices with high copper content immediately reflect raw material prices. Analysts predict a long-term increase in metal prices due to supply shortages and increasing demand.