DAVOS - Most cobalt producers are likely to be losing money on every ton of cobalt they produce after a price slump last year, Benedikt Sobotka, CEO at metals miner Eurasian Resources Group (ERG), said on Tuesday.

Chinese-owned companies are aggressively expanding cobalt mining in Congo and Indonesia despite the price drop, as they strive to gain market share in the metal used in electric vehicle (EV) batteries.


"Cobalt had a terrible year in 2023. The lack of supplier discipline in adding new capacity has really pulled the rug under the cobalt market," Sobotka told Reuters' Global Markets Forum at the World Economic Forum in Davos.

The market fundamentals, however, remain intact as global EV penetration rates are growing, he added.


ERG, 40% owned by the Kazakh government, has assets in Kazakhstan, the Democratic Republic of Congo and Brazil producing cobalt, copper, aluminium and ferroalloys. In 2022, its core earnings, known as underlying EBITDA, totalled $3.4-billion and free cash flow was $481-million.

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