China’s XTC to buy cobalt tetroxide and precursor materials from CNGR

Chinese battery materials producer Xiamen Tungsten New Energy Materials (XTC) has struck a deal with CNGR Advanced Materials Co for the supply of cobalt tetroxide and ternary precursor materials, XTC announced on Wedmesday September 15.

Under the agreement, which runs from September 14, 2021, to December 31, 2023, CNGR is expected to supply to XTC with 20,000-25,000 tonnes per year of cobalt tetroxide and 15,000-35,000 tpy of ternary precursor materials.

Actual quantities and prices will be adjusted according to market conditions.

CNGR is one of China’s leading battery materials manufacturers and produces ternary precursor materials – including nickel-cobalt-manganese (NCM) – which are used to produce lithium-ion batteries for electric vehicles (EVs), along with cobalt tetroxide, which is mostly used to produce lithium cobalt oxide (LCO) batteries for consumer electronics.

Cobalt tetroxide prices moved up in the week to September 10 on slightly improved downstream demand and higher global benchmark cobalt prices.

Fastmarkets’ price assessment for cobalt tetroxide 72.6% Co min, delivered China was 280,000-285,000 yuan ($43,498-44,275) per tonne on September 10, narrowing upward by 5,000 yuan from 275,000-285,000 yuan per tonne on September 8.

What to read next
Rapidly expanding capacity for the recycling of lithium-ion batteries in the United States and Canada has raised worries over the supply of raw materials to feed processors in the region, sources have told Fastmarkets
Chinese mining giant CMOC reported a 178% year-on-year increase in cobalt metal production for the first six months of 2024, according to an announcement by the company on Friday July 12
China’s nickel-cobalt-manganese (NCM) battery output in June registered fell to 20.5 gigawatts hours (GWh), down by 1.5 GWh, or 6.8%, from the 22 GWh in May, and down by 3.7 GWh, or 15.3%, from the 24.2 GWh in March, according to the data from China Automotive Battery Innovation Alliance (CABIA)
The imminent production of commercial-scale battery-grade lithium hydroxide in the US by American Battery Technology Co (ABTC) will help domestic cathode makers to improve their inventory management by shortening lead times, according to the company’s top executive.
Germany-based Volkswagen Group’s battery company PowerCo and California-based QuantumScape have entered into an agreement to industrialize QuantumScape’s solid-state lithium-metal battery technology, the companies announced on Thursday July 11
The publication of Fastmarkets’ MB-CO-0004 cobalt alloy grade, in-whs Rotterdam and MB-CO-0005 cobalt standard grade, in-whs Rotterdam assessments for Friday July 12 were delayed because of a technical error. Fastmarkets’ pricing database has been updated.