China’s CMOC Group Achieves Record Cobalt Production Amid Global Market Shifts
China’s CMOC Group has raised the bar of Cobalt production, setting a record in Cobalt Production. This record makes China dominate the Global Market, driven by a substantial expansion of its African mining operations. The company reported an astonishing 114,165 tonnes of cobalt produced in 2024. This makes it reach nearly double, notably, 55,526 tonnes produced in 2023. This figure surpassed CMOC’s 2024 projections, which had estimated production at just 70,000 tonnes.
CMOC’s impressive performance allowed it to overtake Glencore in 2023, claiming the title of the world’s largest cobalt supplier. This surge in output was fueled by the successful climb of its Kisanfu mine in the Democratic Republic of Congo (DRC), which began operations in the second quarter of 2023.
The company’s record production has significantly contributed to a global oversupply of cobalt, leading to a sharp decline in prices, now at their lowest levels since 2016.
The Growing Influence of China in the Cobalt Market
With cobalt being an essential component in many industries, particularly in battery manufacturing, it plays an important role in the production of electric vehicle (EV) batteries. Thus, the EV sector now accounts for 40% of global cobalt consumption. However, CMOC recently highlighted cobalt’s diminishing relevance in the EV market, hinting at potential market shifts.
The DRC, which produces 74% of the world’s cobalt, continues to dominate global production. Although cobalt deposits exist across other regions, including Australia, North America, and Europe, the DRC’s reserves remain the largest.
China is the world’s leading consumer of cobalt, with an overwhelming 87% of its cobalt consumption dedicated to the lithium-ion battery industry. While Chinese companies hold stakes in just three of the top ten cobalt-producing nations, they dominate cobalt mining operations in countries like the DRC, Indonesia, and Papua New Guinea. In fact, Chinese companies control over half of cobalt production in both the DRC and Indonesia, and an impressive 85% in Papua New Guinea.
Looking toward the future, Benchmark forecasts that by 2030, Chinese companies will control 46% of the global cobalt mined supply, up from 43% in 2023. Meanwhile, the top ten cobalt-producing countries will account for 96% of the total mined supply, with the DRC and Indonesia contributing a combined 84%.
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