Top 5 Cobalt salt resources companies in China

Top 5 Cobalt salt resources companies in China

New energy vehicles, 3C digital, power tool batteries and other markets continue to grow,
Driven by a substantial increase in shipments of ternary lithium batteries, there is a strong demand for upstream cobalt raw materials.

In 2021, the price trend of electrolytic cobalt will be roughly divided into four stages. From January to February, the price of electrolytic cobalt increased rapidly, exceeding 400,000 yuan / ton. Cobalt prices fell in March-April. From May to August, cobalt prices were stable and began to rise slightly. From September to December, cobalt prices rose steadily, showing a trend of exceeding 500,000 RMB/ton.

Electrolytic cobalt

From the perspective of the reasons, from January to February, the 14th Five-Year Plan listed new energy vehicles and 5G as national strategies, and superimposed cobalt salt manufacturers to stock up before the holiday, stimulating cobalt prices to rise. From March to April, the epidemic and lack of cores continued to affect the global mobile phone and automotive industries, and the demand for cobalt salts declined.

From May to August, the cobalt price was relatively stable, and the cobalt transportation was restricted due to the escalation of the epidemic in South Africa, which caused the cobalt price to fluctuate.

From September to December, the new energy vehicle market is booming and the mobile phone market is heating up. In contrast to the limited electricity consumption of electrolytic cobalt and the rising cost of raw materials, the price of electrolytic cobalt continues to rise.

At present, listed companies related to cobalt resources, including Huayou Cobalt, CHENGTUN Mining, HANRUI Cobalt, TENGYUAN Cobalt, and CMOC, have disclosed their 2021 performance reports or performance forecasts.

On the whole, the net profit of the five listed companies in 2021 will achieve varying degrees of growth. Among them, Shengtun Mining is expected to increase its net profit by 17-22 times year-on-year. Huayou Cobalt expects net profit growth of 217.64%-260.56%. Hanrui Cobalt, TENGYUAN Cobalt and Luoyang Molybdenum all had the highest pre-increase in net profit exceeding 100%.

The performance of listed companies of cobalt resources in 2021

The performance of listed companies of cobalt resources in 2021
Listed companyRevenue in 2021 (100 million RMB)year-on-year increaseNet profit in 2021 (100 million RMB)year-on-year increase
Huayou Cobalt  37-42217.64%-260.56%
Shengtun Mining  11.0-14.01762%-2269%
Hanrui Cobalt Industry  6.0-7.079.37%-109.27%
Tengyuan Cobalt Industry41.6132.66%11.4122.91%
Luoyang Aluminum Industry1738.653.89%51.1119.26%

Top 5 Cobalt salt resources companies

HUAYOUHUAYOU is one of top 5 Cobalt salt resources companies in China

Company profile:
Founded in 2002, Huayou Cobalt is a high-tech enterprise mainly engaged in the R&D and manufacturing of new energy lithium battery materials and new cobalt materials.

After 20 years of development, the company has completed the spatial layout of headquartered in Tongxiang, China, resource guarantee overseas, manufacturing base in China, and global market.

It has formed three business segments of resources, new materials and new energy, and created a new energy lithium battery industry ecology from cobalt and nickel resource development and smelting, to deep processing of lithium battery cathode materials, and then to resource recycling.

The company implements the business strategy of high-end products and industrial integration, and realizes the integrated layout of “cobalt and nickel resources – smelting and processing – ternary precursor – cathode material”.

In 2021, the demand for new energy lithium battery materials will continue to grow rapidly, the production and sales of the company’s main products will increase, the sales prices of products will continue to rise, and the profitability will be greatly improved. On March 28, 2022, the company reached a strategic cooperation intention with Volkswagen (China) and Tsingshan Holdings.

Total market value: 119.233 billion RMB

Company website:www.huayou.com

CHENGTUN

CHENGTUN is one of top 5 Cobalt salt resources companies in China

Company profile:
CHENTUN Mining Group Co., Ltd. (hereinafter referred to as CHENGTUN) is a joint stock limited company established in September 1992 by means of social fundraising on the basis of the restructuring of Xiamen Electrical Equipment Factory. Listed on May 31, 1996.

Headquartered in Xiamen, China. The company is committed to the development and utilization of non-ferrous metal resources, especially the non-ferrous metal resources required for new energy batteries, focusing on cobalt, nickel, copper, and zinc metal varieties.

The main business types are metal smelting and deep processing business, non-ferrous metal mining and selection business, non-ferrous metal trading and others, services and others.

The business scope includes investment and management of mines and mining engineering construction; wholesale and retail of mineral products and non-ferrous metals; spot sales of gold and silver;

However, excluding goods and technologies that are restricted by the state or prohibited from import and export; information consultation; sales and services of intelligent high-tech products; entrusted operation and management of assets and equity; investment management (except as otherwise provided by laws and regulations). CHENGTUN Mining Group Co., Ltd. has invested in 35 foreign companies.

On July 22, 2021, Sihuan Zinc Baht successfully passed the intellectual property re-certification.

Due to the increase in production through technological transformation and expansion, the company’s nickel, cobalt and copper output will all reach the highest level in history in 2021. The unit profitability of nickel, cobalt and copper products will increase significantly year-on-year, and the benefit will increase significantly.

Total market value: 24.070 billion RMB

Company website:www.600711.com

HANRUI

HANRUI is one of top 5 Cobalt salt resources companies in China

Company profile:
HANRUI was founded in 1997 and is headquartered in Jiangning Economic and Technological Development Zone, Nanjing, China. The company is mainly engaged in the mining, smelting and processing of copper and cobalt ore resources, and supporting the production of copper and cobalt products, mainly including electrolytic copper, electrolytic cobalt, crude cobalt hydroxide, and cobalt powder.

In order to adapt to the needs and changes of the market, the company continuously optimizes the industrial structure and extends to the new energy field. The company’s products will also include cobalt intermediates and ternary battery materials, thus forming a complete industrial chain.

HANRUI Cobalt has become a multinational enterprise group with 8 industrial companies and 2 international trading companies. On April 25, 2020, Hanrui Metal released copper according to the agreed time node.

The production capacity of the fund-raising projects has been released, the demand for cobalt in the new energy automobile industry has increased, the sales volume of the company’s cobalt and copper products has increased, the sales price has risen, and the profitability has improved.

Registered capital: 19.605 billion RMB

Company website:www.hrcobalt.com

TENGYUAN

TENGYUAN is one of top 5 Cobalt salt resources companies in China

Company profile:
Ganzhou Tengyuan Cobalt New Materials Co., Ltd. (hereinafter referred to as TENGYUAN), established in 2004, is a modern enterprise integrating scientific research, production and trade. The company is located in Ganzhou High-tech Industrial Development Zone, Jiangxi, China.

TENGYUAN Cobalt focuses on management improvement and technological innovation. In terms of management, based on the ISO9001 standard and 6S requirements, we continuously strengthen and improve the internal management system.

In terms of technology, innovation has always been the driving force, and it pays great attention to R&D investment and technology accumulation. Over 3% of sales revenue is invested in R&D every year. Now there is a provincial enterprise technology center, and the company is in the forefront of China in the multi-layer research and development and application of core technologies.

Through technological innovation, TENGYUAN Cobalt’s production line has achieved independent development, has independent intellectual property rights, and completes the design and production of key equipment. The production process is continuous and automated, with originality, and its technical process level is at the leading level in China.

Today, TENGYUAN Cobalt has 7 invention patents and 20 new patents, and has passed the “high-tech enterprise” certification, provincial famous trademark demonstration, and key excellent new product demonstration.

Invested by CATL, Xiamen Tungsten Industry, Ganfeng Lithium Industry, TENGYUAN Cobalt Industry was successfully listed, and plans to raise 2.198 billion RMB. It will invest in the remote intelligent technological transformation and upgrading of series products with an annual output of 20,000 tons of cobalt and 10,000 tons of nickel metal, as well as supporting production projects of raw and auxiliary materials (Phase II) and supplementary working capital.

Total market value: 20.665 billion RMB

Company website:www.tycogz.com

CMOC

CMOC is one of top 5 Cobalt salt resources companies in China

Company profile:
Luoyang Luanchuan Molybdenum Industry Group Co., Ltd. was founded in 1969. After two mixed ownership reforms in 2004 and 2014, the company is currently a joint-stock company with private holdings and state-owned shares. Listed on the Hong Kong Stock Exchange in 2007. Listed on the Shanghai Stock Exchange in 2012.
The company belongs to the non-ferrous metal mining and dressing industry, mainly engaged in the mining, dressing and smelting of base metals and rare metals, mining and processing business and mineral trading business.

At present, the company’s main business is distributed in five continents, Asia, Africa, South America, Oceania and Europe. It is the world’s leading producer of tungsten, cobalt, niobium, molybdenum and an important copper producer. It is also the leading producer of phosphate fertilizers in Brazil. At the same time, the company’s base metal trading business ranks among the top three in the world.

In April, it established an all-round strategic partnership with CATL for new energy metals to jointly invest in the development of this another major world-class mineral resource. In August, the company plans to invest 2.51 billion US dollars (about 16.3 billion RMB) for the construction of the Congo (DRC) TFM copper-cobalt mixed mine project.

Total market value: 114.044 billion RMB

Company website:www.cmoc.com

At the beginning of 2022, the demand for cobalt products will remain strong, the gap between supply and demand is expected to widen, and the market price of cobalt products will rise slightly.

CMOC announced that from January to February 2022, the company’s cobalt output will increase by 52% year-on-year, making it the fastest growing product among the company’s main products, copper, cobalt and niobium.

From the supply side, Glencore shut down the Mutanda project at the end of 2019, and the shutdown may continue until 2022. Mutanda’s production accounts for about 18% of the world’s total production, and it was the world’s largest cobalt mine before the shutdown. At the same time, overseas logistics continue to be affected by the epidemic, and the supply of cobalt raw materials is relatively tight.

The new energy vehicle market is developing rapidly, and global vehicle electrification is an irreversible development trend

From the demand side, the new energy vehicle market is developing rapidly, and the electrification of global vehicles is an irreversible development trend. Traditional car companies such as Volkswagen, BMW, Mercedes-Benz, Toyota, Nissan and other accelerated electrification and Tesla’s sales exceeded expectations, and the demand for high-performance ternary power lithium batteries is heating up, and the demand for cobalt products will continue to grow.

At the same time, the promotion of 5G technology is further increasing the demand for battery capacity of mobile phones, superimposing the trend of high voltage and high capacity of lithium battery, drone battery, wearable devices (phone watches, TWS), vape battery and smart home equipment are becoming more and more popular. It has become an important incremental market driving the demand for cobalt products.

The industry point of view is that although cobalt-free has technical clues, large-scale commercial promotion will still take some time. It is expected that from 2022 to 2025, the average annual compound growth rate of global cobalt consumption will still maintain a growth of more than 6%.

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