Cobalt is frequently known for its ability to create vibrant blue pigments, often referred to as cobalt blue.
However, many may not realise the effects this mineral is having on the energy transition today.
Over the past year, cobalt has seen a 68.86% increase and is currently priced at US$56,290 ($78,532) per tonne, according to Trading Economics.
Aside from its visual enhancements, cobalt is crucial for the energy transition by stabilising energy in lithium-ion batteries, hardening metal alloys for extreme heat, and producing permanent magnets.
In 2026, the price of cobalt has increased 5.5%, following a decrease in exploration expenditure last year.
Cobalt and nickel expenditure fell to around $163 million in 2025, according to the Department of Industry, Science and Resources’ (DISR) Resources and Energy Quarterly: June 2026.
Cobalt and nickel are grouped together in reporting conducted by the Australian Bureau of Statistics due to the co-location of these two minerals.
The expenditure drop represents a 28% year-on-year decline, as well as a 36% fall since 2023.
DISR reports negative demand drivers for cobalt include a shift to alternative battery chemistries and environmental, social, and governance (ESG) concerns.
Positive demand drivers are spearheaded by continued growth in batteries needed for electric vehicles, as well as aerospace superalloys.
Export earnings for cobalt in the current financial year are estimated to decrease from $133 million in 2024–25 to $113 million. Cobalt exports are expected to increase in the following years to $116 million in 2026–27 and $120 million in 2027–28, DISR reports.
Cobalt occurrences in Australia
Cobalt occurs at Terra Metals’ (ASX:TM1) Dante Project in the West Musgrave region of Western Australia, particularly within the Southwest magmatic sulphide system.
As reported by Mining.com.au last month, Terra Metals intersected 1m @ 1,160 parts per million (ppm) cobalt (Co) at the Southwest system, along with 1.75 grams per tonne gold, 0.24g/t platinum, and 0.26g/t palladium from 16m at hole SWRC059.
The shallow oxide-gold and cobalt zones indicate that the mineralised system is not restricted to the primary platinum group elements (PGE)-copper-nickel reefs, with the potential for additional critical minerals at shallower levels that may complement the main sulphide corridor.
Southwest represents a new mineralised corridor outside Dante’s existing mineral resource and is not confined to a single reef.
The Dante Project hosts a resource estimate of 148 million tonnes (Mt) @ 14.8% titanium dioxide, 0.54% vanadium pentoxide, 0.18% copper, and 0.33g/t of PGE.
Terra Metals is focused on rapidly advancing the Southwest within the Dante Project, which the company says is “now recognised as Australia’s next major platinum group metal system”.
In October 2025, Legacy Minerals (ASX:LGM) entered a memorandum of understanding with Cobalt Blue (ASX:COB) to assess strategic options for cobalt and other products sourced from the NiCo Young Project in New South Wales.
The agreement has a three-year term and is intended to help Legacy assess potential pathways towards commercialisation for the project, which it secured in May 2025.
NiCo Young currently hosts a JORC-compliant mineral resource of 167.8Mt @ 0.59% nickel (Ni) and 0.06% Co for a 0.6% Ni equivalent cut-off, containing 1Mt of Ni and 100,000 tonnes of Co.
Legacy Minerals is a gold, copper, and base metals explorer focused on New South Wales.
Write to Maddison Elliott at Mining.com.au
Images: iStock & Terra Metals
