Connect with us

Hi, what are you looking for?


China Plans Record Purchase of 15,000 MT of Cobalt Metal

A report from Reuters suggests that China is gearing up to make a big move in the cobalt market, with plans to acquire up to 15,000 metric tons (MT) of cobalt metal from local producers this year.

The acquisition, overseen by the state’s National Food and Strategic Reserves Administration, aims to bolster the country’s stockpiles as it jumps from the 8,700 MT of cobalt metal purchased last year.

The country’s decision to purchase such a substantial amount of cobalt is driven by several factors.

Firstly, cobalt is a critical material in the production of electric vehicle (EV) batteries, an industry in which China holds substantial investments. Amassing a large cobalt reserve will ensure a steady supply of material for the country’s growing EV market and support its broader energy transition and technological advancement goals.

Additionally, cobalt is vital for the defense and aerospace industries due to its use in high-strength alloys and magnets that are essential for communication and advanced weaponry.

Most of the cobalt that China plans to purchase is expected to come from domestic producers.

Currently, a significant portion of the world’s cobalt supply originates from the Democratic Republic of Congo (DRC), which produced over 170,000 MT last year, accounting for approximately 77 percent of global output.

Chinese companies, notably CMOC Group (HKEX:3993), have a strong presence in the DRC. The company’s Tenke Fungurume mining site is one of the largest cobalt producers globally. Given the strategic importance of cobalt, China is likely to continue leveraging its investments in the DRC to secure steady supply.

China is a dominant player in cobalt refining, processing about 80 percent of the world’s cobalt. Its planned purchase of cobalt metal comes at a time when cobalt prices are at their lowest in nearly five years.

The global cobalt market is currently experiencing a surplus, with estimates sourced by Reuters indicating oversupply of around 20,000 MT in 2024 if China’s buying goes through as planned.

However, industry experts have expressed mixed views on the impact of China’s purchase. Some believe it will provide a temporary boost to cobalt prices, which have been under pressure due to the oversupply.

Others see it differently. ‘This move could take some pressure off cobalt prices, but it won’t be a game-changer in an oversupplied market,’ an unnamed industry source commented to Reuters.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Overview Energy Fuels( TSX:EFR, NYSE:UUUU) has been the largest producer of uranium and vanadium in the United States and an emerging producer of rare...

    Latest News

    Britain’s Prince and Princess of Wales have released a new photo of Prince Louis to mark his sixth birthday on Tuesday, the first image...

    Editor's Pick

    There is no trial in recent history, or possibly all of American history, that can rival the one underway in Lower Manhattan. For the...


    Meta Platforms Inc. (META), the social media giant formerly known as Facebook, has been in tight consolidation at the top of its range for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024