Congo Plant Helps China's CMOC Hit Record Cobalt Output
TLDR
- China’s CMOC Group achieved record output in 2024, producing 114,165 tons, more than double its 2023 volume
- The figure, disclosed in a stock exchange filing Monday, far exceeded the company’s guidance of up to 70,000 tons
- The sharp increase, driven by accelerated operations at CMOC’s mines in the Democratic Republic of Congo, solidifies its lead over competitors
China’s CMOC Group, the world’s largest cobalt producer, achieved record output in 2024, producing 114,165 tons, more than double its 2023 volume. The figure, disclosed in a stock exchange filing Monday, far exceeded the company’s guidance of up to 70,000 tons.
The sharp increase, driven by accelerated operations at CMOC’s mines in the Democratic Republic of Congo, solidifies its lead over competitors like Glencore Plc. Cobalt is a key material for batteries and aerospace alloys, but CMOC’s record output has exacerbated a global oversupply, driving prices to their lowest levels since 2016.
The company noted in November the declining importance of cobalt in electric-vehicle batteries. CMOC, which extracts cobalt as a by-product of copper mining, has also ramped up copper output, producing over 650,000 tons in 2024—a 55% year-on-year increase. CMOC remains optimistic about copper’s long-term prospects despite current market pressures.
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Key Takeaways
CMOC’s record-breaking cobalt production underscores its dominance but also highlights challenges from a saturated market. While demand for cobalt in traditional sectors like aerospace remains steady, its role in electric-vehicle batteries is diminishing as manufacturers shift toward alternatives like nickel and manganese. The resulting cobalt price slump reflects broader supply-demand imbalances. CMOC’s strategy to pair cobalt production with aggressive copper output growth suggests a focus on diversifying revenue streams. Copper, critical for electrification and infrastructure, offers a more stable long-term outlook, aligning with global energy transition trends.
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