Tengyuan Cobalt Industry just dropped a bombshell, folks. They’re planning a joint venture and a massive $980 million (9.8 billion yuan) hydrometallurgical plant in the Democratic Republic of Congo (DRC) – and it’s a move that screams strategic foresight, and frankly, a little bit of necessity.
Let’s be clear: this isn’t just about expansion; it’s about control. Tengyuan, riding high on an 81.24% profit surge in 2024 with a net profit of 685 million yuan, clearly understands the vulnerabilities in the cobalt supply chain. They’re not waiting for disruptions; they’re building resilience.
The play? Leverage their own hydrometallurgical tech with the resource advantages of SAWA CONGO MINING SARL. They’re setting up a Hong Kong-based joint venture with Hong Kong Kenvista (controlled by SAWA’s ultimate shareholder) to operate this DRC project.
Here’s a quick breakdown of why this matters (for those keeping score at home):
Cobalt is vital – a key ingredient in the lithium-ion batteries powering our EVs and electronics. DRC controls over 70% of global cobalt reserves.
Hydrometallurgy is gaining traction. It’s a process using aqueous chemistry to extract metals from ore, often more environmentally friendly than traditional smelting.
The 30,000-tonne copper and 2,000-tonne cobalt annual capacity plant demonstrates scale. This is a significant addition to global supply.
The 18-month construction timeline is aggressive, signaling Tengyuan’s commitment to fast-tracking this crucial project.
And, as if to cement their confidence, they’re also doling out a hefty cash dividend of 5 yuan per 10 shares!
This isn’t just a corporate announcement; it’s a signal. Companies are finally waking up to the reality that securing raw material access means vertical integration, even in complex and politically challenging regions like the DRC. Expect more of this proactive approach as the battery revolution continues to unfold.
