CMOC Group Achieves Record Cobalt Production with African Expansion

China’s CMOC Group set a new benchmark in global cobalt production in 2024, thanks to a rapid increase in output from its African mining operations.

The company announced it produced 114,165 tonnes of cobalt last year, nearly doubling the 55,526 tonnes achieved in 2023.

This output far exceeded its 2024 guidance of 70,000 tonnes, solidifying CMOC’s status as the world’s leading cobalt supplier.

In 2023, CMOC overtook Glencore as the largest global cobalt producer, driven by significant production gains from its Kisanfu mine in the Democratic Republic of Congo (DRC), which began operations in the second quarter. However, this surge in supply has contributed to a global cobalt surplus, pushing prices to their lowest levels since 2016.

Cobalt, a crucial mineral for numerous industrial, commercial, and military applications, has gained prominence for its role in battery manufacturing. The electric vehicle (EV) sector now accounts for 40% of global cobalt demand.

Despite its critical role in EV batteries, CMOC recently warned of cobalt’s declining significance in the sector, as manufacturers explore alternative materials.

The Democratic Republic of Congo remains the world’s leading cobalt producer, accounting for 74% of global supply. While deposits exist in other regions such as Australia, North America, and Europe, the DRC’s reserves remain unmatched.

China, the largest consumer of cobalt globally, uses 87% of its cobalt for lithium-ion battery production. Although Chinese companies only have stakes in three of the top 10 cobalt-producing countries, they dominate production in key regions:

• Over 50% of cobalt production in the DRC and Indonesia
• 85% of cobalt production in Papua New Guinea

According to Benchmark, Chinese companies are projected to control 46% of global cobalt supply by 2030, up from 43% in 2023.

The top 10 cobalt-producing countries will account for 96% of global output by 2030, with the DRC and Indonesia contributing a combined 84%.

CMOC’s record-breaking production highlights the growing importance of Africa in the global supply chain for critical minerals.

However, the cobalt oversupply raises concerns about price volatility and the mineral’s long-term role in a rapidly evolving battery technology landscape.

SOURCE:batterymetalsafrica.com