What percentage of EVs still use cobalt?

Approximately 50% of EVs still rely on cobalt-based batteries.

How does Tesla benefit from shifting to cobalt-free batteries?

Tesla has adopted LFP batteries in its standard models, reducing its exposure to cobalt supply chain risks compared to competitors.

What are LFP batteries?

Lithium iron phosphate (LFP) batteries are a type of battery that does not contain cobalt, offering lower cost and higher safety but lower energy density than cobalt-based batteries.

Cobalt Supply Risks Threaten Half of Global EV Market

Nearly half of all electric vehicles still rely on cobalt-based batteries, leaving manufacturers vulnerable to supply chain disruptions, according to Oilprice.com. This persists despite the growing adoption of cobalt-free LFP batteries by companies like Tesla and BYD.

June 23, 2026

2 min read

Source: Oilprice.com

Key Numbers

ev cobalt share

50%

Nearly half of the world's electric vehicles still depend on cobalt-based batteries, exposing automakers to significant supply chain risks, according to a report by Oilprice.com.

Details

Despite the increasing adoption of lithium iron phosphate (LFP) batteries by companies like Tesla (TSLA) and BYD, approximately 50% of EVs still use lithium-ion batteries that contain cobalt. Cobalt is primarily mined in the Democratic Republic of Congo, where geopolitical and labor risks are concentrated.

Context

Automakers are seeking to reduce reliance on cobalt due to price volatility and supply chain concerns. Tesla has led the shift by adopting LFP batteries in its standard-range models, while BYD is also moving aggressively in this direction. However, cobalt-based batteries remain prevalent in premium vehicles that require higher energy density.

What This Means for Investors

Disruptions in cobalt supply could impact production costs and profit margins for automakers that rely on it. Investors in Tesla (TSLA) may benefit from the company's early transition to cobalt-free technologies, reducing its exposure to these risks compared to competitors.

Frequently Asked Questions

Because it is primarily mined in the Democratic Republic of Congo, where geopolitical and labor risks make supply chains vulnerable to disruptions.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.