Cobalt is a base material used in manufacturing. Usually a byproduct of refining copper or nickel, this element is used in items that include electric vehicle (EV) batteries, industrial equipment parts, and paints.
Particularly due to rising demand for lithium-ion batteries in electronic devices and electric cars, cobalt prices rose steadily in 2021 and 2022. Mining companies increased output in response, leading to a cobalt surplus.
Demand also dropped for several reasons, including the development of low-cobalt batteries and concerns about human rights and environmental abuses in the Democratic Republic of Congo, where more than 70% of cobalt was mined in 2024. By mid-2024, the spot price of cobalt was down more than 60% from the highs it reached about two years prior.
Facing an oversupply and tanking prices, the Democratic Republic of Congo announced a temporary cobalt export ban in early 2025. The ban increased the price of cobalt by a little more than one-third in the first half of 2025. The ban ended in October 2025, but it's been replaced by an export quota that will restrict DRC cobalt exports in 2026 and 2027 to roughly half of 2024 levels.
Top cobalt stocks for 2026
Like any other commodity, cobalt prices can be highly volatile. Additionally, since cobalt is a byproduct, there aren't really any pure-play cobalt stocks within the metal mining industry. Many cobalt stocks aren't listed on a U.S. exchange.
Here are five stocks to watch in 2026 that are involved in the production of cobalt:
| Market cap | Current price | Dividend yield |
|---|---|---|
| $186.0 billion | $73.24 | 3.63% |
| $69.1 billion | $16.19 | 0.91% |
| $86.7 billion | $14.83 | 1.35% |
| $61.5 billion | $135.56 | 0.51% |
| $46.8 billion | $2.20 | 1.61% |
1. BHP Group
NYSE: BHP
Key Data Points
One of the world's largest mining companies, BHP Group (BHP -0.43%) is an Australian-based company with operations worldwide. Copper and nickel are among its top products, so cobalt (one of the byproducts of refining these two metals) is naturally mined by BHP. The company is consistently profitable and tends to generate operating profit margins well into double digits.
2. Vale S.A.
NYSE: VALE
Key Data Points
Vale (VALE +0.81%) is another top producer of metals and base materials. Based in Brazil, it is one of Latin America's largest companies. It is the world's top producer of iron and nickel, as well as a top producer of other metals used in battery manufacturing, such as manganese and copper. As a miner of nickel and copper, Vale is also an ancillary supplier of cobalt, though it isn't a significant source of revenue for the company.
3. Glencore
OTC: GLNCY
Key Data Points
Switzerland-based Glencore (GLNCY -1.12%) is another global mining operation. Among its energy, recycling, and mining assets is the production of base metals, including copper, nickel, and, of course, cobalt. In fact, Glencore is one of the world's top cobalt producers, primarily as a byproduct of its copper mines in the Democratic Republic of Congo.
4. Wheaton Precious Metals
NYSE: WPM
Key Data Points
As its name suggests, Wheaton Precious Metals (WPM -0.91%) is an investment in elements like gold and silver. In addition to precious metals, Wheaton acquires significant amounts of cobalt. Although not directly involved in the production of base materials like cobalt, Wheaton harbors a valuable niche in the global mining space. It's also very profitable and pays dividends for investors seeking income.
5. CMOC Group Ltd.
OTC: CMCLF
Key Data Points
China is the world’s largest market for electric vehicles. It is a top user of cobalt as well, and CMOC Group Ltd. (CMCLF -2.22%) (formerly China Molybdenum) is a top producer of the element. In fact, through its copper mining assets in the Democratic Republic of Congo, CMOC Group Ltd. is the world’s second-largest producer of cobalt (which it derives as a byproduct of copper refining).
How to invest in cobalt stocks
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Features to look for in a cobalt stock
If you're considering an investment in a cobalt stock, here are some features to look for:
- Exposure to other metals. Few pure-play cobalt stocks exist because cobalt is overwhelmingly mined as a byproduct of copper and nickel. The primary metals a company mines are more likely to drive profits than cobalt alone.
- Geographic diversity. Almost three-quarters of the global cobalt supply was mined in the Democratic Republic of Congo, a country rife with geopolitical instability.
- Cost efficiency. Investing in companies with low production costs in primary metals can offer some insulation from volatility driven by oversupply or falling cobalt demand.
Why invest in cobalt stocks?
Investing in cobalt stocks could pay off in the long run, but it's best suited for those with a high risk tolerance and a long time horizon. If you need more predictable returns or steady dividends, you're better off putting your money elsewhere.
How to choose the right cobalt stock
Commodity prices can fluctuate wildly; supply and demand change from month to month and year to year. Stocks of companies that produce such commodities can also fluctuate wildly in price.
Focus on investing in established businesses with a track record of generating healthy profit margins, especially if you are an investor seeking more stable returns or investment income.
How to diversify a cobalt investment portfolio
To diversify a cobalt investment portfolio, look for companies that mine cobalt as a byproduct of other metals for protection against a major drop in cobalt prices. Consider investing in multiple mining companies or mining ETFs to reduce company-specific investment risks. Also look for geographic diversity, given the troubled history of the Democratic Republic of Congo, which is the world's largest cobalt supplier.
The future outlook for cobalt stocks
Although there's still strong demand for cobalt, particularly in the EV industry, many battery makers are shifting toward lithium iron phosphate (LFP) batteries, which don't require cobalt. That creates a fair degree of uncertainty about cobalt prices in the long term.
Keep in mind, though, that very few pure-play cobalt mining companies exist. Cobalt is typically a byproduct of copper or nickel refining and usually accounts for a small share of revenue for most mining companies. Changes in cobalt prices or global demand are unlikely to be a game changer, particularly for well-diversified companies.
Related investing topics
FAQ
Investing in cobalt stocks: FAQ
About the Author
Robin Hartill, CFP has no position in any of the stocks mentioned. The Motley Fool recommends BHP Group. The Motley Fool has a disclosure policy.
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