Cobalt Spot Price Per Pound in Baltimore: Market Trends

Cobalt spot price per pound is a crucial indicator for industries reliant on this strategic metal, including battery manufacturers, aerospace firms, and chemical producers. In Baltimore, a city with a significant industrial and port presence, understanding these price fluctuations is vital for strategic procurement and investment. The spot price reflects the current market value for immediate delivery, making it a key benchmark for buyers and sellers. This article delves into the factors influencing the cobalt spot price per pound, with a specific focus on its relevance to the Baltimore metropolitan area and the broader United States market. We will analyze market trends, supply chain dynamics, and the outlook for cobalt pricing in 2026, providing insights for stakeholders operating in or connected to Baltimore’s industrial sectors.

Cobalt’s critical role in technologies ranging from electric vehicles to high-strength alloys means its market price is closely watched. For businesses in Baltimore, whether involved in manufacturing, trading, or investment, tracking the cobalt spot price is essential for managing costs and identifying opportunities. This guide aims to provide a clear understanding of what drives the price per pound of cobalt, the impact of global events, and how local factors might play a role. We will explore the interplay between supply, demand, and geopolitical influences that shape the market, offering a comprehensive perspective for 2026 and beyond.

Understanding Cobalt Spot Price Dynamics

The cobalt spot price per pound represents the immediate market value for cobalt metal or its primary compounds, available for quick delivery. Unlike long-term contract prices, the spot price is highly sensitive to current market conditions, making it a volatile yet crucial metric. Several core factors influence this price. Firstly, the global balance of supply and demand is paramount. Cobalt production is heavily concentrated in a few regions, primarily the Democratic Republic of Congo (DRC), making the supply chain inherently vulnerable to disruptions such as political instability, labor issues, or logistical bottlenecks. Conversely, demand is surging, driven by the exponential growth in electric vehicle (EV) battery production, where cobalt is a key component in many cathode chemistries. The electronics industry and high-performance alloys for aerospace and industrial applications also contribute significantly to demand. Fluctuations in these supply and demand dynamics directly impact the spot price, often leading to rapid increases or decreases.

Key Factors Influencing Cobalt Prices

Beyond the fundamental supply and demand, several other factors significantly influence the cobalt spot price per pound. Geopolitical events, particularly those occurring in major producing nations like the DRC, can create uncertainty and trigger price spikes as buyers rush to secure supply. The development of new cobalt mines or the expansion of existing ones can increase supply and potentially moderate prices, though such projects often have long lead times. Technological advancements play a dual role: innovations in battery technology that reduce cobalt content or utilize alternative materials can dampen demand over time, while increased adoption of cobalt-reliant technologies boosts demand. The health of the global economy also plays a role; a strong economy generally correlates with higher industrial output and thus greater demand for cobalt. Furthermore, speculation in commodity markets and the actions of major cobalt producers and consumers can also contribute to short-term price volatility. For businesses in Baltimore, monitoring these interconnected factors is essential for informed decision-making regarding cobalt procurement in 2026.

Supply Chain Vulnerabilities

The cobalt supply chain is notoriously concentrated and complex, presenting significant vulnerabilities that directly impact the cobalt spot price per pound. The Democratic Republic of Congo (DRC) accounts for over 70% of global cobalt mine production. This heavy reliance on a single region creates substantial risk. Political instability, artisanal mining challenges (including ethical concerns related to child labor and unsafe practices), and logistical hurdles within the DRC can lead to sudden supply shortages, causing prices to surge. Diversification efforts are underway, with new projects emerging in countries like Australia, Canada, and Cuba, but these are yet to significantly alter the global production landscape. Furthermore, the processing of cobalt ore into usable forms like metal, oxides, or sulfates is often concentrated in specific countries, such as China. Disruptions at these processing hubs can also impact global availability and pricing. These vulnerabilities mean that the cobalt market is prone to significant price swings, making supply chain resilience a major concern for industries worldwide, including those based in or trading through Baltimore.

Demand Drivers: Batteries and Beyond

The demand for cobalt is overwhelmingly driven by its critical role in rechargeable batteries, particularly those used in electric vehicles (EVs) and consumer electronics. Lithium-ion batteries often utilize cobalt in their cathode materials (like NMC – Nickel Manganese Cobalt, and NCA – Nickel Cobalt Aluminum) due to its ability to enhance energy density, longevity, and charging speed. As the global automotive industry transitions towards electrification, the demand for cobalt in batteries has skyrocketed. Projections for 2026 and beyond indicate continued robust growth in this sector. Beyond batteries, cobalt is indispensable in other high-value applications. It is a key component in superalloys used for high-temperature applications, such as jet engine turbine blades, due to its strength and resistance to corrosion and heat. It is also used in magnetic materials, catalysts for chemical processes, and pigments. While batteries represent the largest and fastest-growing demand segment, these other industrial uses provide a baseline level of demand that contributes to the overall market dynamics affecting the cobalt spot price per pound.

Cobalt Price Trends and Forecasts for 2026

Analyzing historical trends and future forecasts for the cobalt spot price per pound is crucial for businesses planning their strategies. Over the past decade, cobalt prices have exhibited significant volatility. Periods of scarcity and high demand, often triggered by supply disruptions or rapid growth in EV sales, have led to dramatic price spikes, sometimes reaching unprecedented levels. Conversely, increased production from new mines, the development of lower-cobalt or cobalt-free battery chemistries, or economic downturns have resulted in price corrections. Looking ahead to 2026, forecasts suggest continued upward pressure on cobalt prices, primarily due to the sustained growth in EV adoption globally. While efforts to reduce cobalt content in batteries are ongoing, widespread implementation and technological maturity take time. Geopolitical risks associated with supply concentration in the DRC are also expected to persist, acting as a potential catalyst for price increases. However, increased investment in recycling infrastructure and potential diversification of supply sources could introduce moderating factors.

Historical Price Volatility

The history of cobalt pricing is marked by significant swings, underscoring its status as a volatile commodity. For instance, between 2016 and 2018, the cobalt price per pound experienced a dramatic surge, more than quadrupling as demand from the burgeoning lithium-ion battery market outpaced supply and supply chain concerns intensified. This period saw prices climbing well above $40 per pound. However, this rally was followed by a sharp decline in 2019 and 2020, as the market adjusted to new supply entering the market, concerns about battery chemistry shifts grew, and global economic conditions softened. This volatility highlights the sensitivity of the cobalt market to multiple interconnected factors, including producer decisions, technological innovation, and geopolitical stability. For businesses in Baltimore and beyond, understanding this historical context is vital for risk management and strategic planning regarding cobalt sourcing in 2026.

Factors Shaping the 2026 Outlook

Several key factors are expected to shape the cobalt spot price per pound outlook for 2026. The continued expansion of the electric vehicle market remains the dominant demand driver. As more automakers commit to ambitious EV production targets, the need for battery-grade cobalt is projected to rise significantly. Mitigation strategies, such as increasing nickel content in NMC batteries or developing cobalt-free chemistries like Lithium Iron Phosphate (LFP), are gaining traction, but cobalt-based cathodes are likely to remain prevalent in many high-performance EV applications in the medium term. On the supply side, the DRC is expected to continue as the dominant producer, with ongoing concerns about ethical sourcing and supply chain stability persisting. Efforts to increase production from other regions or advance recycling technologies could influence supply dynamics, but significant shifts often take years. Geopolitical tensions and global economic health will also continue to be influential variables. Therefore, while forecasts point towards generally strong demand, the specific price trajectory will depend on the interplay of these complex factors.

Impact on Industries in Baltimore

The price of cobalt has direct implications for various industries operating in or connected to Baltimore. For battery manufacturers, higher cobalt prices increase production costs, potentially affecting the price of EVs and electronics sold in the region. This could spur greater investment in cobalt reduction technologies or alternative battery chemistries. Aerospace companies, reliant on cobalt for superalloys, will face similar cost pressures, potentially impacting the price of aircraft components and MRO services. Chemical producers using cobalt in catalysts may need to adjust their pricing or explore substitute materials. Furthermore, the port of Baltimore serves as a critical node for international trade, including the import and export of metals and manufactured goods. Fluctuations in the cobalt spot price per pound can affect shipping volumes and the overall trade balance. Businesses that closely monitor these price trends and develop strategies for managing cobalt-related costs and risks will be better positioned for success in 2026.

Where to Track Cobalt Prices in Baltimore

For businesses and investors in Baltimore seeking to stay informed about the cobalt spot price per pound, several reliable resources are available. Accessing real-time or near-real-time pricing data is crucial for making timely purchasing decisions, managing inventory, and assessing market trends. These resources typically provide daily or even intra-day price updates, often accompanied by market analysis and news that can explain price movements. Understanding where to find this information allows stakeholders in Baltimore to react promptly to market shifts and mitigate potential financial risks associated with cobalt price volatility.

Reliable Market Data Providers

Several reputable financial and commodity data providers offer real-time or daily updates on the cobalt spot price per pound. These include major financial news outlets like Bloomberg and Reuters, which provide market data terminals and online services accessible to professionals. Specialized commodity analysis firms, such as Metal Bulletin (Fastmarkets), S&P Global Commodity Insights, and CRU Group, offer in-depth market reports, price assessments, and forecasts, often available through subscription services. These services provide detailed price information for various cobalt products (metal, oxides, sulfates) and often include regional breakdowns and historical data, which are invaluable for businesses in Baltimore. Publicly traded mining and chemical companies that are major players in the cobalt market also often report their pricing or production costs, offering indirect insights.

Industry News and Analysis

Staying abreast of industry news and expert analysis is as important as tracking the raw price data. Trade publications focusing on mining, metals, batteries, and chemicals frequently report on significant developments affecting cobalt supply and demand. These include announcements about new mining projects, changes in battery technology, major supply chain disruptions, or shifts in government policies related to critical minerals. Reading analysis from reputable sources helps contextualize price movements and anticipate future trends. For those in Baltimore, following news from major automotive manufacturers, battery producers, and global mining companies provides a clearer picture of the forces shaping the cobalt market. Websites of industry associations and research institutions also offer valuable perspectives.

Exchange Traded Funds (ETFs) and Futures Markets

For investors interested in cobalt, tracking prices can also be done through financial instruments like cobalt-related Exchange Traded Funds (ETFs) or futures contracts, if available and sufficiently liquid. While direct cobalt futures markets might be less liquid than those for more common commodities, related metals or diversified mining ETFs may offer indirect exposure. The performance of these financial products can often reflect underlying sentiment and price expectations for cobalt. For sophisticated market participants in Baltimore, monitoring these financial markets can provide another layer of insight into the perceived value and future direction of cobalt prices. However, it’s important to distinguish between the spot price of the physical commodity and the price of financial derivatives, which can be influenced by different factors.

Local Resources and Trade Associations

While global data providers are essential, local resources can also be helpful for understanding market nuances in Baltimore. Engaging with local industry associations related to manufacturing, chemicals, or port logistics might offer insights into regional demand and supply trends. Sometimes, local commodity brokers or trading houses specializing in metals can provide tailored market intelligence. Networking with other professionals in the Baltimore industrial sector who deal with cobalt or related materials can also yield valuable information and perspectives on pricing and availability. Building a network within the industry can provide a more grounded understanding of how global price trends translate to the local market.

Cost and Pricing for Cobalt in Baltimore

The cost of cobalt in Baltimore is directly tied to the global cobalt spot price per pound, but local factors can introduce additional considerations. For businesses in the Baltimore area, understanding these costs involves looking beyond the headline market price to consider the total landed cost, which includes transportation, import duties (if applicable), and any associated fees. The price of cobalt itself, whether in metal, oxide, or sulfate form, fluctuates daily based on international market dynamics. These fluctuations can significantly impact the operational budgets of companies that rely on cobalt for their manufacturing processes, making cost management a critical aspect of their business strategy. Monitoring the spot price is the first step, but a comprehensive understanding of all associated costs is necessary for accurate budgeting and financial planning in 2026.

Factors Affecting Local Cobalt Costs

Several factors contribute to the overall cost of cobalt for businesses in Baltimore. Firstly, the prevailing cobalt spot price per pound on international exchanges is the primary determinant. Secondly, transportation costs play a significant role. Baltimore’s port facilities are advantageous for importing cobalt materials, but costs associated with shipping, handling, and drayage from the port to the end-user’s facility must be factored in. Thirdly, import duties and tariffs can add to the cost, depending on the origin of the cobalt and current trade policies. Fourthly, the form and purity of the cobalt required by the end-user influence the price; higher purity materials or specific chemical compounds command premium prices. Finally, currency exchange rates can affect the cost of imported cobalt. Buyers need to consider all these elements to determine the true cost of acquiring cobalt in the Baltimore region.

Price Comparison: Metal vs. Compounds

The cobalt spot price per pound can differ based on whether one is purchasing pure cobalt metal, cobalt oxides, or cobalt sulfates. Pure cobalt metal, often in the form of powder or briquettes, is typically the most expensive form, reflecting the costs of its primary refining. Cobalt oxides (like cobalt monoxide or dioxide) and cobalt sulfates are intermediate chemical compounds often used directly in battery cathode precursor production. These compounds are generally priced based on their cobalt content and market demand for specific chemical grades, and they are usually less expensive per pound of contained cobalt than pure metal, but their price is still closely linked to the underlying cobalt market. For instance, cobalt sulfate prices are heavily influenced by the spot price of cobalt metal, as it is derived from it. Understanding which form is most suitable and cost-effective for a specific application is crucial for Baltimore-based manufacturers.

Strategies for Cost Management

Given the volatility of cobalt prices, businesses in Baltimore employ various strategies to manage costs. Hedging through financial instruments or long-term supply contracts can help lock in prices and provide budget certainty, mitigating exposure to short-term spot price spikes. Diversifying supply sources, both geographically and by supplier, can reduce reliance on any single source and potentially improve negotiating power. Investing in technologies that reduce cobalt content in products or utilize alternative materials is a longer-term strategy gaining momentum. For example, developing or adopting battery chemistries with lower cobalt requirements can significantly lower costs. Optimizing inventory management and improving process efficiency to minimize waste are also key tactical measures. By combining these approaches, companies can better navigate the fluctuating costs associated with cobalt in 2026.

Top Cobalt Suppliers for Baltimore Industries (2026)

For industries in Baltimore that rely on cobalt, securing a reliable supply of this critical metal is paramount. The cobalt spot price per pound is just one aspect; identifying dependable suppliers who can provide consistent quality and volume is equally important. Suppliers range from large multinational mining and chemical companies to specialized traders and processors. Choosing the right supplier often depends on the specific form of cobalt needed (metal, oxide, sulfate), the required quantity, and the importance of factors like ethical sourcing and supply chain transparency. As demand continues to grow, particularly driven by the burgeoning battery sector, identifying leading suppliers who can meet these evolving needs is a strategic imperative for Baltimore’s industrial base in 2026.

Major Global Cobalt Producers

Several global mining giants are significant producers of cobalt, often extracting it as a by-product of copper or nickel mining. Companies like Glencore, China Molybdenum (CMOC), and Eurasian Resources Group (ERG) are among the largest suppliers of mined cobalt. These companies typically sell cobalt in various forms, including concentrates, metal, and chemicals, through direct sales or long-term contracts. Their production is heavily concentrated in the DRC, which introduces supply chain risks, but they are also investing in exploration and development in other regions. For large-scale consumers in Baltimore, establishing relationships with these major producers can ensure a stable supply, although contract negotiations can be complex and prices may be linked to contract-specific formulas rather than daily spot rates.

Specialized Chemical and Metal Processors

Beyond primary mining, numerous specialized companies focus on processing cobalt ore into high-purity metal, oxides, and sulfates required for specific industrial applications, particularly battery cathode manufacturing. Companies such as Umicore, BASF, and Sumitomo Metal Mining are key players in this segment. They often invest heavily in refining technologies to meet stringent quality specifications and may engage in recycling activities to supplement their primary supply. These processors are critical links in the supply chain, transforming raw cobalt into the precise materials needed by manufacturers. Baltimore-based companies requiring battery-grade cobalt chemicals would likely source from these specialized processors, focusing on consistency, quality assurance, and reliable delivery schedules.

Metal Traders and Distributors

Metal traders and distributors play a vital role in bridging the gap between large producers and end-users, especially for smaller or medium-sized consumers. These companies manage logistics, break down bulk shipments, and offer various forms of cobalt, including metal powders, ingots, and chemical compounds. They provide market access and often have more flexible terms compared to large producers. For Baltimore businesses that may not require massive volumes or prefer more agile sourcing, working with reputable metal traders can be an effective strategy. These traders often provide valuable market intelligence regarding the cobalt spot price per pound and availability trends, helping clients make informed purchasing decisions. Selecting traders with strong financial backing and a proven track record in the metals market is advisable.

Ethical Sourcing and Sustainability Focus

Increasingly, buyers are prioritizing suppliers who demonstrate a commitment to ethical sourcing and sustainable practices. Given the concerns surrounding artisanal mining in the DRC, many companies are seeking suppliers who can provide traceability and assurance regarding labor practices and environmental standards. Initiatives like the Global Battery Alliance’s (GBA) Responsible Sourcing Blockchain Network aim to improve transparency in the cobalt supply chain. Suppliers who actively participate in such initiatives or have robust internal programs for responsible sourcing are becoming more attractive partners. Baltimore industries looking to enhance their corporate social responsibility profiles may find it beneficial to prioritize suppliers with strong ethical credentials when sourcing cobalt in 2026.

Cobalt Market in Baltimore: Opportunities and Challenges

Baltimore, with its strategic port location and strong industrial heritage, presents both opportunities and challenges for the cobalt market. The city’s access to international shipping routes facilitates the import of cobalt raw materials and the export of finished goods containing cobalt. Its existing manufacturing base, encompassing industries like chemicals, transportation equipment, and potentially battery production, creates a local demand for cobalt products. However, the market is also subject to the same global volatilities that affect pricing and supply chains worldwide. Understanding these local dynamics is key for businesses operating in or trading through Baltimore, especially concerning the cobalt spot price per pound and securing reliable supply chains for 2026.

The Role of the Port of Baltimore

The Port of Baltimore is a critical gateway for international trade, making it a significant factor in the local cobalt market. It handles a vast array of imported and exported goods, including raw materials and manufactured products. For cobalt, the port can facilitate the import of cobalt ore, concentrates, or processed materials from global sources, as well as the export of finished goods that incorporate cobalt, such as batteries or specialized alloys. Efficient port operations, competitive shipping rates, and robust logistics infrastructure are essential for managing the costs associated with cobalt supply chains. Companies in Baltimore can leverage the port’s capabilities to optimize their sourcing strategies and potentially reduce lead times and transportation expenses, influencing the effective cost of cobalt beyond just the spot price.

Local Industrial Demand

Baltimore’s diverse industrial base generates specific demands for cobalt. Chemical manufacturers may use cobalt compounds as catalysts in various industrial processes. The aerospace and defense sectors, historically strong in the region, utilize cobalt in high-performance alloys. While not a major hub for EV battery gigafactories currently, the broader push towards electrification suggests potential future growth in related manufacturing or supply chain support within the region. The demand from these local industries directly influences the volume and types of cobalt products required, affecting supplier relationships and potentially creating opportunities for specialized traders or processors within the Baltimore area. Meeting this local demand effectively requires close monitoring of the cobalt spot price per pound and ensuring secure supply lines.

Challenges: Supply Chain Risks and Pricing Volatility

Like elsewhere, businesses in Baltimore face significant challenges related to cobalt supply chain risks and price volatility. The concentration of mining in the DRC and processing in China exposes the supply chain to geopolitical instability, ethical concerns, and logistical disruptions. This can lead to sudden price shocks in the cobalt spot price per pound, making cost forecasting difficult and potentially impacting profit margins. Furthermore, the increasing demand from the EV sector puts pressure on existing supply, exacerbating these risks. Companies need robust risk management strategies, which might include diversifying suppliers, exploring alternative materials, or entering into longer-term supply agreements to mitigate the impact of these challenges. Developing resilience in the cobalt supply chain is a key focus for industries in Baltimore heading into 2026.

Opportunities in Recycling and Innovation

The challenges in the cobalt market also present opportunities, particularly in recycling and technological innovation. As the amount of cobalt-containing waste products, such as spent batteries, grows, establishing advanced recycling facilities could become a viable and valuable venture in the Baltimore region. Recycling reduces reliance on primary sources, mitigates ethical concerns, and can provide a more stable, cost-effective supply of cobalt. Furthermore, Baltimore’s ecosystem of research institutions and its focus on technological advancement could foster innovation in cobalt applications, such as developing new battery chemistries with lower cobalt content or enhancing the performance of cobalt-based materials. Supporting these areas can position Baltimore’s industries for future growth and sustainability in the critical minerals sector.

Common Mistakes When Buying Cobalt

Navigating the cobalt market, especially when focused on the cobalt spot price per pound, can be fraught with potential errors for buyers. These mistakes can lead to overspending, supply disruptions, or compromising product quality. Understanding these pitfalls is crucial for businesses in Baltimore and beyond to ensure efficient and cost-effective procurement of this vital metal. From overlooking the total cost of ownership to inadequate due diligence on suppliers, the potential for missteps is significant. Avoiding these common errors requires a strategic approach, careful planning, and a comprehensive understanding of the market dynamics and the specific needs of the application.

1. Mistake 1: Focusing Solely on Spot Price

   Why it’s problematic: The spot price reflects immediate value but doesn’t account for total landed cost, including transportation, tariffs, handling fees, or the risk of future price volatility. Relying only on the spot price can lead to unexpected budget overruns.

   How to avoid: Calculate the total cost of ownership, including all associated fees. Consider long-term contracts or hedging strategies to manage price fluctuations and ensure budget stability.

2. Mistake 2: Inadequate Supplier Due Diligence

   Why it’s problematic: Partnering with unreliable suppliers can result in inconsistent quality, delayed deliveries, or even supply chain disruptions, particularly given the sensitivities around cobalt sourcing. This can halt production and damage reputation.

   How to avoid: Thoroughly vet potential suppliers. Check their track record, financial stability, quality control processes, and commitment to ethical sourcing. Request references and conduct site visits if possible.

3. Mistake 3: Ignoring Supply Chain Risks

   Why it’s problematic: Over-reliance on a single supplier or geographic region (like the DRC) creates significant vulnerability to geopolitical events, logistical issues, or ethical concerns, which can lead to sudden shortages and price shocks.

   How to avoid: Diversify your supplier base geographically and by company. Understand the origin of your cobalt and seek suppliers with transparent and resilient supply chains. Explore recycling options for a more stable domestic source.

4. Mistake 4: Not Specifying Purity and Form Clearly

   Why it’s problematic: Cobalt is used in various forms (metal, oxide, sulfate) and purity levels. Failing to clearly define requirements can lead to receiving incorrect materials, necessitating costly rework or compromising product performance.

   How to avoid: Clearly specify the exact chemical form, purity percentage, and physical characteristics required for your application. Ensure these specifications are included in all purchase orders and contracts.

5. Mistake 5: Failing to Plan for Price Volatility

   Why it’s problematic: The cobalt spot price per pound is inherently volatile. Not having contingency plans can lead to budget crises, reduced profitability, or inability to secure necessary materials during price surges.

   How to avoid: Develop risk management strategies, such as hedging, long-term contracts with price adjustment clauses, or exploring alternative materials. Maintain strategic inventory levels where feasible.

By diligently avoiding these common mistakes, companies in Baltimore can establish more robust, cost-effective, and reliable cobalt procurement processes for 2026 and beyond.

Frequently Asked Questions About Cobalt Spot Price

Conclusion: Strategic Cobalt Procurement in Baltimore (2026)

The cobalt spot price per pound serves as a critical barometer for industries in Baltimore that depend on this essential metal. Fluctuations in this price, driven by a complex interplay of global supply constraints, surging demand from the electric vehicle sector, and geopolitical factors, present both significant challenges and strategic opportunities. For Baltimore’s manufacturers, understanding these dynamics is not merely about tracking a market number; it’s about managing operational costs, ensuring supply chain resilience, and maintaining competitiveness. By leveraging resources for accurate price tracking, conducting thorough supplier due diligence, diversifying sourcing strategies, and potentially exploring hedging or long-term contracts, businesses can better navigate the inherent volatility. Furthermore, embracing innovation in battery technology to reduce cobalt dependency and investing in local recycling initiatives can build a more sustainable and secure future for cobalt supply. As the global economy evolves towards electrification and resource efficiency in 2026, strategic procurement and risk management concerning cobalt will remain a defining factor for industrial success in the Baltimore region and beyond.

Key Takeaways:

• Cobalt prices are volatile, influenced by supply concentration (DRC), high demand (EVs), and geopolitical events.
• The spot price is a key indicator but doesn’t reflect the total cost of ownership.
• Diversifying suppliers and exploring alternative materials are crucial risk management strategies.
• Baltimore’s port infrastructure offers advantages for international sourcing, while local recycling presents future opportunities.
• Strategic planning is essential for managing costs and ensuring supply reliability in 2026.