The only U.S. cobalt mine, located in northern Idaho, remains inactive as its owner, Jervois Global, struggles to compete with Chinese rivals flooding the market with cheaper cobalt. This bluish metal is essential for electric vehicle batteries and electronics.
Last year, Jervois witnessed a significant drop in cobalt prices after China’s CMOC Group opened the Kisanfu mine in the Democratic Republic of Congo, leading to record-high global production. The Idaho mine, which Jervois acquired in 2019, was idled in June 2023, just before its planned opening, resulting in over 250 job losses. Site manager Matthew Lengerich highlighted the impact of cobalt prices, stating that the mine requires prices of at least $20 per pound to operate, while prices were around $12.17 in July.
Western mining companies like BHP and Albemarle face similar challenges as they compete with metals produced by Chinese-linked companies, which often benefit from lower production costs due to practices such as using coal-generated electricity or child labor. This situation has led to calls for a two-tier pricing system, where sustainably produced metals would command a premium.
The proposed system would allow for different pricing based on production methods, potentially creating a market for “green” metals. However, experts warn that this could reduce market transparency and lead to confusion over definitions of what constitutes “green metal.”