China to increase control of global cobalt production

21st March, 2023

CHINA is poised to strengthen its hold on the global supply of cobalt, a vital metal for producing electric vehicle batteries, due to a surge in production that has led to a 32-month low in its price, reports London's Financial Times.

Darton Commodities, a cobalt trader based in the UK, forecasts that China's share of cobalt production will increase to 50 per cent in the next two years, up from its current 44 per cent share.

This increase in production comes despite Western attempts to gain control of the supply chain for critical minerals such as cobalt, lithium and nickel, which are crucial for producing electric vehicle batteries.

Chinese refining activity reached 140,000 tonnes in 2022, double the level five years ago, while the rest of the world processed only 40,000 tonnes, giving Asia's largest economy a 77 per cent share of global refining capacity.

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