CNGR Begins Cobalt Metal Deliveries in China

CNGR, a leading Chinese producer of lithium-ion battery cathode active materials, has initiated cobalt metal deliveries from its new facility in Qinzhou, Guangxi province. This move marks a significant expansion in CNGR's product line, which began in June, and includes a production capacity of 2,000 tonnes per year of cobalt metal with a purity exceeding 99.99%. The facility also has the potential to boost its capacity by 50%.

CNGR’s operational processes involve transforming low-nickel matte into high-nickel matte, followed by the production of nickel sulphate and cobalt sulphate, eventually yielding nickel and cobalt metals. This strategic enhancement aligns with the surging domestic production of cobalt metal in China, which reached approximately 12,300 tonnes from January to May, more than double the previous year's output. This surge is attributed to a premium on metal over cobalt salts, even though recent market prices for 99.8% grade cobalt have fallen by nearly 10% due to abundant supplies and lower demand.

In 2023, CNGR’s production of cathode active material precursors saw a 22% increase, totaling 284,192 tonnes. This includes significant outputs of NCM ternary precursors, cobalt tetroxide, and iron phosphate. Additionally, in February, the London Metal Exchange approved the listing of nickel cathode produced by CNGR, marking another milestone for the company.