Cobalt is a critical raw material used in many lithium-ion cathodes, notably NMC, to improve stability and energy density. It is one of the four materials — alongside natural graphite, lithium, and nickel — explicitly named in the battery due-diligence obligations of Regulation (EU) 2023/1542 because of the documented social and environmental risks in its supply chain. Cobalt is also subject to minimum recycled-content and material-recovery targets that phase in under the Regulation.
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