Russia’s metals giant Nornickel is in discussions with several Chinese battery manufacturers, including CNGR Advanced Material and Brunp Recycling, a subsidiary of CATL, to establish a joint nickel production facility. This plant would process Russian semi-finished nickel products into nickel sulfate, essential for electric vehicle batteries.
The move is part of Nornickel’s strategy to shift production away from Russia and into China to mitigate the impact of Western sanctions related to the Ukraine conflict. This potential project marks Nornickel’s third significant international venture this year, following plans to relocate copper smelting to China and build a platinum group metals refinery in Bahrain.
Hunan province is being considered as a potential site for the new plant, though no final decisions have been made. Nornickel is prepared to supply up to 50,000 metric tons of nickel annually, representing about a quarter of its 2023 production.
Despite the ongoing discussions, both CATL and CNGR have publicly denied any current negotiations or interest in partnering with Nornickel for this project. Nornickel has yet to confirm any details officially.
The global nickel market faces oversupply issues, with primary output estimated at 3.55 million tons this year, and Chinese battery manufacturers frequently sourcing from Indonesia. Nornickel’s move could secure a stable supply of nickel for Chinese firms that do not have Indonesian deposits.
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