CMOC Cobalt Production to Explode in 2024: A Doubling

The global cobalt market is going through a difficult period, marked by a spectacular fall in prices. In two years, prices for the metal, which is essential for the manufacture of batteries for electric vehicles, have lost 50% of their value, reaching 24,300 dollars a tonne at the beginning of January 2025, compared with more than 28,000 dollars in January 2024. This fall is largely due to oversupply, largely supplied by the Chinese giant CMOC.

CMOC, which operates the Kisanfu and Tenke Fungurume mines in the Democratic Republic of Congo (DRC), has doubled its cobalt production in one year. In 2024, the company produced 114,165 tonnes, compared with 55,526 tonnes in 2023, far exceeding its initial target of 70,000 tonnes. This massive increase, announced on 6 January 2025, has exacerbated the oversupply on the market.

According to the Cobalt Institute, a surplus of 14,200 tonnes was recorded in 2023, and the market remained in surplus throughout 2024. The Kisanfu mine, operated by CMOC, is identified as the main contributor to this surplus.

Although copper prices reached record highs in 2024, peaking at over $10,000 per tonne in May, this trend did not benefit cobalt. As a by-product of copper mining, cobalt has seen its production increase along with that of copper, from which CMOC extracted more than 650,000 tonnes in 2024, up 55% on 2023.

However, despite this momentum, CMOC has not announced any cuts in its cobalt production, fuelling the surplus on the market and exacerbating the pressure on prices.

Overproduction continues to weigh on the sector, raising concerns among players in the value chain. With the Cobalt Institute forecasting a surplus market by 2025, uncertainty remains over CMOC's strategy. The company has not yet published its production targets for this year, casting doubt on whether it will reduce volumes.

On 3 January 2025, cobalt prices on the London Metal Exchange remained low at $24,300 per tonne, while copper was trading at $8,876 per tonne.

Falling cobalt prices are raising questions about the viability of many mining operations, particularly for smaller producers. While demand for cobalt continues to grow, notably due to the boom in electric vehicles, oversupply could curb investment in the sector in the short term.

CMOC's role will be decisive in rebalancing the market. However, with production regularly exceeding expectations, the company remains in the spotlight, both for its performance and for its influence on the global cobalt economy.

The year 2025 promises to be a crucial one for the market, with players having to navigate between a glut, low prices and the challenges of the energy transition.