CMOC smashes its cobalt production record in 2024

Chinese mining giant CMOC (China Molybdenum Co.) has announced an outstanding performance in 2024, achieving record cobalt production of 114,165 tonnes. This figure represents a spectacular increase on the 55,526 tonnes produced in 2023, consolidating CMOC's position as world leader in the cobalt market and surpassing Glencore, its main competitor.

This impressive result stems from the rapid increase in production at the Kisanfu mine, located in the Democratic Republic of Congo (DRC). Commissioned in the second quarter of 2023, this massive mine has made a significant contribution to CMOC's growth. Thanks to this ramp-up, the company has not only exceeded its initial forecast of 70,000 tonnes for 2024, but has also doubled its production in one year.

The DRC, which currently produces 74% of the world's cobalt supply, remains a key player in the sector. With the world's largest reserves of this strategic mineral, the country is at the heart of CMOC's efforts to meet the growing demand for battery materials.

The explosion in CMOC production has exacerbated the oversupply of cobalt on the world market, causing prices to fall to their lowest levels since 2016. This situation reflects the growing tensions between a rapidly expanding supply and a demand that, although significant, could evolve as a result of changes in battery technologies.

In November, CMOC warned against a possible reduction in the importance of cobalt in electric vehicle batteries, a sector that currently accounts for 40% of global consumption of this metal.

CMOC's performance is part of a wider strategy by China, the world's largest consumer of cobalt, to secure its supply of critical raw materials. With 87% of its cobalt consumption dedicated to the lithium-ion battery industry, China continues to dominate the battery value chain.

Although Chinese companies hold stakes in only three of the top ten cobalt-producing countries, they control more than half of production in the DRC and Indonesia, as well as 85% in Papua New Guinea. According to Benchmark, China is set to control 46% of the world's supply of mined cobalt by 2030, consolidating its position in the industry.

By 2030, the top ten cobalt-producing countries will provide 96% of the total supply, with the DRC and Indonesia alone contributing 84%. This highlights the geostrategic importance of Congolese resources and the decisive role of companies like CMOC in shaping the future of cobalt.

As technologies evolve and markets adjust, the record set by CMOC in 2024 reflects not only an industrial ambition, but also a challenge for the entire global battery ecosystem. While the current glut is putting pressure on prices, it could also accelerate innovation and diversification of battery technologies to meet the needs of a sustainable energy transition.