Time: 2024-08-01
Russian mining company Nornickel is in talks with Chinese battery manufacturers to establish a nickel production facility in China . This move is aimed at tapping into the growing demand for nickel in the Electric battery sector . The proposed plant would process Russian nickel matte into nickel sulphate , which is a crucial component in electric vehicle batteries . Nornickel plans to supply 50,000 tonnes of nickel annually to the plant , with companies like CNGR Advanced Material and Brunp Recycling , a subsidiary of CATL , being involved in the discussions.
The potential location for the new plant is in Hunan province , known for being a key hub for China 's battery industry . This strategic decision by Nornickel comes in response to Western sanctions imposed on Russia following the Ukraine invasion , which have disrupted the company 's sales routes . By relocating some of its production processes to China , Nornickel aims to integrate its nickel into the global battery supply chain more effectively.
Despite the potential benefits of the partnership , Chinese companies are proceeding with caution due to the sanctions landscape and the risk of alienating Western buyers . However , Nornickel 's production could serve as a long - term , guaranteed source for Chinese companies that do not have nickel assets in Indonesia . In 2023 , Nornickel accounted for 6 % of the global nickel output , producing 209,000 tonnes of the metal.
Reuters also reported that Nornickel is planning to restart one of the furnaces at its Nadezhda Smelter in early August 2024 . This initiative underscores Nornickel 's commitment to expanding its presence in China and strengthening its position in the global battery supply chain . The company 's move to establish a nickel plant in China reflects its strategic vision and long - term goals in the electric battery sector , despite the challenges posed by the current geopolitical landscape.
As Nornickel continues its discussions with Chinese partners and explores opportunities in the battery industry , the company remains focused on enhancing its production capabilities and meeting the increasing demand for nickel in electric vehicle batteries . The collaboration between Nornickel and Chinese battery manufacturers signifies a significant step towards establishing a more robust and diversified supply chain for the global electric vehicle market.
In conclusion , Nornickel 's plans to set up a nickel plant in China represent a strategic shift in the company 's production processes and supply chain management . By leveraging the expertise and resources of Chinese battery manufacturers , Nornickel aims to strengthen its position in the electric battery sector and capitalize on the growing demand for nickel in the global market . The partnership between Nornickel and Chinese companies holds great potential for driving innovation and sustainability in the electric vehicle industry , paving the way for a more efficient and environmentally friendly future.