The world’s largest cobalt producer, China’s CMOC Group, is targeting record-high cobalt output for 2025 following a significant production ramp-up at its mines in the Democratic Republic of Congo (DRC). After achieving a landmark production of 114,165 tons of cobalt in 2024, the company expects to produce between 100,000 and 120,000 tons of the critical battery metal next year. This level of output would be on par with last year’s record-setting performance and underscores CMOC's growing dominance in the cobalt market.

CMOC’s success in boosting cobalt production is primarily attributed to its two major mines in the DRC: Tenke Fungurume Mining (TFM) and Kisanfu Mining (KFM). The company’s efforts to ramp up operations at these sites, including exploration work in TFM’s western area and advancements in KFM Phase II, have contributed to a dramatic increase in output. The company more than doubled its cobalt production in 2024, an impressive feat that further solidified its position as the top global supplier of the material.

The company’s aggressive expansion in cobalt production could put additional downward pressure on cobalt prices, which have already fallen to their lowest levels since 2016. CMOC’s ability to exceed its 2024 production targets within the first nine months of the year has had a tangible impact on the market, with prices for cobalt — a key component in electric vehicle batteries and aerospace alloys — continuing to slide. The ongoing production surge has raised concerns about supply-demand dynamics in the cobalt market, particularly as prices struggle to recover.

While cobalt has long been considered an essential element in battery technology, CMOC has expressed some caution about the material’s future role in the electric vehicle (EV) sector. In November, the company sounded the alarm about the diminishing reliance on cobalt in EV batteries, signalling that the metal’s dominance in this application may be waning as manufacturers shift toward alternatives like nickel. This shift could reshape future demand for cobalt, even as CMOC continues to ramp up production.

In addition to its cobalt operations, CMOC is also bullish on copper, with the company projecting copper output for 2025 between 600,000 and 660,000 tons, up slightly from last year’s 650,000 tons. The company’s focus on copper is part of a broader strategy to diversify its mining portfolio, though it continues to see cobalt as a critical revenue stream.

For 2024, CMOC has reported a strong financial performance, with preliminary net income rising by between 55% and 72% year-on-year, reaching an estimated 12.8 billion yuan ($1.76 billion) to 14.2 billion yuan. The increase in profit was driven by higher production levels, stronger sales, and favourable copper prices, positioning the company for a robust 2025.

As CMOC continues to scale up its production capacity, the company navigates the delicate balance between supply, demand, and evolving trends in the battery materials sector.