Huayou Cobalt Considering Forging a Partnership with LG Chem

Huayou Cobalt, a prominent Chinese battery metals and cathode producer, expressed intentions to collaborate with South Korea's renowned lithium-ion battery producer, LG Chem. They have aspirations to establish manufacturing facilities in countries like Indonesia and Morocco. Their joint venture in Indonesia aims to construct a facility with a 50,000 t/yr production capacity, specializing in cathode active material (CAM) precursors and other refining products. Additionally, there is a plan to develop a high-pressure acid leaching (HPAL) plant with an impressive 60,000 t/yr nickel metal equivalent capacity, intended for the production of mixed hydroxide precipitate (MHP).

Furthermore, their collaboration will extend to Morocco, where the companies are set to establish a 52,000 t/yr production facility for lithium salts. Preliminary agreements for these ambitious projects have been signed, although specifics regarding the construction timelines remain confidential.

This initiative is seen as a part of a larger trend where numerous Chinese companies involved in the lithium-ion battery industry, including Huayou Cobalt and others like GEM and CNGR, are bolstering their investment in international production projects. Their motivation largely stems from the need to adhere to the US's Inflation Reduction Act (IRA) requirements and to navigate the EU's restrictions under the Critical Raw Materials (CRM) Act.

Moreover, Huayou Cobalt has previously demonstrated its commitment to investing in nickel and cobalt projects in Indonesia, catering to the electric vehicle battery industry. Past endeavors include the successful launch of their Huayue and Huafei projects in Indonesia, with impressive production capacities. A new project named Huashan is also in the pipeline, anticipated to start production by 2025.

The firm's record in nickel shipments is noteworthy. In the first half of 2023, their shipments surged, tripling the figures from the previous year. Additionally, a partnership with the Brazilian nickel producer Vale is in the works, with a plant anticipated to begin production in 2027.

Huayou's recent statistics on shipments of CAM, ternary CAM, lithium cobalt oxide, and ternary precursors indicate growth in multiple areas. The company has witnessed an uptrend in their deliveries of cobalt products as well, underscoring their expanding footprint in the industry.

According to the article by Procurement Resource, Huayou Cobalt and South Korea's LG Chem are collaborating to establish manufacturing facilities in Indonesia and Morocco, aiming at expanding production capabilities for battery metals. The partnership will see the creation of a facility in Indonesia focused on cathode active material (CAM) precursors and another for lithium salts in Morocco. This venture reflects a broader trend among Chinese companies to invest globally in the lithium-ion battery sector, navigating US and EU regulations while addressing the growing electric vehicle battery market.