China’s CMOC Group has set a record in annual cobalt production, driven by the rapid ramp-up of its African mines.
The company announced on Monday it produced 114,165 tonnes last year, nearly double the 55,526 tonnes recorded in 2023. The figure also exceeded its 2024 guidance, which had capped expectations at 70,000 tonnes.
CMOC overtook Glencore in 2023 as the world’s largest cobalt supplier thanks to a significant output boost from its massive Kisanfu mine in the Democratic Republic of Congo, which began operations in the second quarter.
However, CMOC’s record production has also intensified a global cobalt oversupply, driving prices to their lowest levels since 2016.
In November, the company warned of cobalt’s declining importance in the electric vehicle market.
The Chinese company also reported a 55% surge in copper production last year compared to 2023, exceeding 650,000 tonnes.
Cobalt is a critical mineral with a wide range of commercial, industrial, and military applications. It has gained significant attention in recent years due to its use in battery production. Today, the EV sector accounts for 40% of the global cobalt market.
The Democratic Republic of Congo currently produces 74% of the world’s cobalt supply. Although cobalt deposits exist in regions like Australia, Europe, and Asia, the DRC holds the largest reserves by far.
China is the world’s leading consumer of cobalt, with nearly 87% of its cobalt consumption dedicated to the lithium-ion battery industry.
Although Chinese companies hold stakes in only three of the top 10 cobalt-producing countries, they control over half of the cobalt production in the DRC and Indonesia, and 85% of the output in Papua New Guinea.
According to Benchmark, Chinese companies are expected to control 46% of the global cobalt mined supply by 2030, a 3% increase from 2023.
By 2030, the top 10 cobalt-producing countries will account for 96% of the total mined supply, with just two countries — the DRC and Indonesia — contributing 84% of the total.
Read More: Visualizing China’s cobalt supply dominance by 2030
