China Molybdenum Hits Record Cobalt Production, Driving Global Surplus and Price Drop

China Molybdenum Company (CMOC), the world’s leading cobalt producer, is believed to produce the largest cobalt in 2024 as it rapidly expands its African mining operations.

According to Bloomberg on Monday, CMOC produced 114,165 tons of cobalt last year. This figure doubles the 2023 output and significantly exceeds the previously forecasted 70,000 tons.

In 2023, CMOC overtook Switzerland’s Glencore Plc and became the world’s top cobalt supplier. Production surged at its mines in the Democratic Republic of Congo, further cementing the company’s market dominance in metals used in various applications, from batteries to aerospace alloys.

However, CMOC’s massive production increase has created a global cobalt surplus, driving prices to their lowest levels since 2016. This raised the alarm about cobalt’s reduced role in the electric vehicle revolution in November.

Cobalt is frequently extracted as a byproduct of copper mining. As CMOC ramped up its copper production, cobalt production naturally increased. The company reported that its copper production surged by 55% last year, exceeding 650,000 tons compared to 2023.