At present, the main traditional areas of consumption and application of cobalt are battery materials, superalloys, tool steels, cemented carbides, and magnetic materials. Cobalt consumed in the form of compounds is mainly used as catalysts, desiccants, reagents, pigments, and dyes. Cobalt-60 is a widely used radioactive material that is widely used in biochemistry for activation analysis; in electroplating, corrosion, and catalysis for tracer studies; and in medicine for radiation examinations and treatments.

Cobalt is one of the few metallic materials that remain magnetised after just one magnetisation. The temperature at which magnetisation is lost under the influence of heat is known as the Curie point. While the Curie point of iron is 769 degree and that of nickel is 358 degree , In a vibrating environment, ordinary magnetic steel loses almost one-third of its magnetism. Cobalt steel, however, only loses 2%–3.5% of its magnetism. Due to its superior magnetic properties, cobalt is widely used in the manufacture of high-performance magnetic materials.

Magnetic materials are important functional materials that play a very important role in the electronics industry and high-tech fields. Cobalt is used in magnetic materials as follows: 70% in Alnico permanent magnet alloys, 20% in Smco alloys, and 10% in other rare earth permanent magnet materials.