LME Approves Listing of China's Greatpower Co. Cobalt Cathode

Greatpower

The London Metal Exchange (LME) has officially approved the listing of Zhejiang Greatpower Co.'s GREATPOWER brand cobalt cathode. This milestone, announced on December 17, 2023, marks a significant step for the Chinese cobalt industry in gaining global recognition. Greatpower, a major player in cobalt production, operates a state-of-the-art cobalt cathode facility in Shangyu district, Shaoxing city, located in eastern China’s Zhejiang province.

Expansion Plans for Greatpower

Since its launch in 2022, the Greatpower cobalt cathode facility has maintained a production capacity of 2,000 tons per year (t/yr). Looking ahead, the company is set to double its output by 2025, with plans to reach 4,000 t/yr. This expansion will help Greatpower meet the growing global demand for refined cobalt, particularly as cobalt remains essential for energy storage technologies, electric vehicle (EV) batteries, and other high-tech industries.

China’s Growing Cobalt Production Capacity

Greatpower’s refined cobalt output, which includes cobalt sulphate, cobalt chloride, and cobalt cathode, contributes to the nation’s rapidly expanding capacity in cobalt metal production. In 2023, the price premium for cobalt metal over cobalt salts has encouraged domestic refineries to increase their production. According to market forecasts, China’s cobalt metal capacity is expected to more than double, reaching around 65,000 tons in 2024, with further potential for growth to 80,000 tons by 2025.

Key players in China's cobalt industry, including Jinchuan, Huayou, GEM, Hanrui, Tengyuan, and Guangxi Yinyi, are expanding their operations. New entrants such as CNGR and New Era Group Zhejiang Zhongneng are also slated to launch production lines in 2024.

Impact of LME Listings

The LME’s approval of cobalt cathodes from China is expected to slightly ease the oversupply in the domestic market. Other Chinese cathode brands already listed on the LME include those from Jinchuan, Yantai Cash Industrial, GEM (Jiangsu) Cobalt Industry, Quzhou Huayou Cobalt New Material, Ganzhou Tengyuan Cobalt New Material, and Zhejiang Greatpower Cobalt Materials. With increasing global demand for cobalt, these listings offer greater market access for Chinese producers while contributing to a more balanced global cobalt supply.