China Moves to Further Control Global Cobalt Supply for Batteries

China appears close to hiking its share of the global market for refined cobalt—a key ingredient in batteries for electric cars—above 60%, The Financial Times reports.

Earlier this month metals producer China Molybdenum Co. Ltd. announced a $2.7 billion deal to acquire the Tenke copper mine in the Democratic Republic of Congo (DRC). FT notes that the mine also contains one of the world’s largest cobalt deposits.

If the deal goes through, Chinese refiners will be able to produce about 62% of the world’s processed cobalt. FT says surging demand for hybrid and all-electric cars is expected to boost demand for the metal by more than two-thirds in 10 years. Cobalt also is used in batteries for smartphones and other personal electronic devices.

The DRC accounts for more than half the world’s current supply of cobalt. FT says the country’s Tenke mine produce 16,000 tons of cobalt last year. Chinese refiners get more than 90% of their cobalt ore from the DRC.

Analysts tell FT that China will undoubtedly use much of the cobalt it controls to support its own push to put more EVs on the road. But they predict cobalt prices will rise as the country further dominates the cobalt supply chain.