Minmetals New Energy Secures Nickel Supply Through Strategic Investment in Jinchuan Nickel and Cobalt

Minmetals New Energy

In a strategic move to secure a steady supply of essential nickel raw materials, China's Minmetals New Energy (MNE) has committed to investing 500 million yuan ($69 million) in Jinchuan Nickel and Cobalt (JNC). This investment will support MNE’s growing production needs in a rapidly evolving battery materials market.

Investment Details and Supply Agreement

MNE will acquire newly issued equities in JNC, a subsidiary of the major diversified metals producer, Jinchuan Group, as announced on December 11. The exact number of shares acquired remains undisclosed. Under the terms of the agreement, JNC will supply MNE with at least 200 tons per month, but no more than 12,000 tons per year, of nickel metal equivalent in nickel sulphate form.

Expanding Capacities and Market Impact

MNE, based in Changshan, Hunan province, boasts a significant production capacity that includes 120,000 tons per year of nickel-cobalt-manganese (NCM), 60,000 tons per year of lithium-iron-phosphate (LFP), 30,000 tons per year of NCM precursor, and 5,000 tons per year in waste battery recycling. The company reported a substantial increase in its LFP product shipments from June to September, with approximately 6,000 tons shipped, marking a significant rise from the previous quarter.

Jinchuan Group has been enhancing its production capacities to meet the burgeoning demand for battery materials. It initiated production at its nickel salts facility in 2018 with a capacity of 100,000 tons per year and expanded by an additional 100,000 tons in 2022. Furthermore, Jinchuan is constructing another nickel sulphate plant in Gansu province, anticipated to eventually contribute an additional 280,000 tons per year to its total output, reinforcing its position as a pivotal player in the nickel market.