Huayou Cobalt Reports Surge in Nickel and Cobalt Shipments Amidst Expanding Global Demand

In a strong showing for the first half of 2024, Huayou Cobalt, one of China's leading producers of battery materials and metals, reported significant increases in shipments of cobalt, nickel, and lithium-ion battery precursors. The company disclosed that its cobalt shipments rose by 13% year-on-year, reaching 23,000 tons from January to June. Nickel shipments saw an even more substantial rise, increasing by over 40% to 76,000 tons during the same period. These figures also account for materials used internally.

Shipments of lithium-ion battery precursors, which include ternary precursors and cobalt tetroxide, grew by 11% to 67,000 tons. However, shipments of cathode active material (CAM) slightly declined to 53,000 tons. Additionally, Huayou shipped over 100 tons of sodium-ion battery precursors in the first half of the year.

The company attributed the strong demand for its products to robust downstream segments. Industry data cited by Huayou revealed a 15% year-on-year increase in global power battery installations, totaling 346 GWh for the first half of the year. Despite this, China's production of ternary CAM slightly dipped by 1% to 300,000 tons, as lithium iron phosphate batteries dominated the market due to lower manufacturing costs. However, the adoption of high-nickel ternary batteries is anticipated to gain momentum, likely driving further demand for nickel-based materials.

The consumer electronics sector also showed signs of recovery during the same period. Global shipments of smartphones and personal computers rose by 11% and 5.5%, respectively, reaching 585 million and 120 million units.

Huayou's international projects continue to show progress. The Huafei project in Indonesia, with an annual capacity of 120,000 tons of nickel metal equivalent, reached its design capacity by the end of Q1. The Huayue project, also in Indonesia, and the Huake nickel matte project maintained stable production. Huayou is advancing key nickel projects in partnership with Ford and Vale in Indonesia. Additionally, the company’s 50,000 tons/year lithium salts plant in Guangxi province, China, has reached full capacity, supported by feedstock from the Arcadia mine in Zimbabwe.

Huayou is also expanding its global footprint with the construction of a 50,000 tons/year ternary precursor project in Indonesia and a 25,000 tons/year ternary CAM project in Hungary.