Battery metal prices have plummeted, largely influenced by substantial expansions undertaken by Chinese miners.
With many Western competitors scaling back production or ceasing operations entirely, Chinese mining giants are poised to capitalize on this opportunity for further growth.
Zijin Mining Group Co., China’s leading producer, has announced plans to acquire “ultra-large mines or mining companies with global influence” to bolster its presence in lithium and other critical metals.
Similarly, CMOC Group, surpassing Glencore as the world’s top cobalt producer last year, sees the stabilization of prices in battery metals as an opening for global acquisitions.
Attention now shifts to the forthcoming results from Tianqi Lithium Corp. and Ganfeng Lithium Corp., as their statements may shed light on their strategic moves in response to the evolving market dynamics.
The aggressive expansion strategies of these Chinese miners should give pause to traders, investors, and competitors anticipating an immediate rebound in battery-metal prices.
Furthermore, they intensify concerns in Western capitals regarding China’s dominance over vital minerals.
Despite significant spending initiatives introduced by the US and the European Union, China’s supremacy in cobalt, nickel, and lithium is poised to strengthen in the coming years.
Tsingshan Holding Group Co., the world’s leading nickel producer, is also advancing expansion plans.
Chairman Chen Jinghe of Zijin Mining anticipates resistance to their expansion endeavors, acknowledging geopolitical tensions.
Nevertheless, the demand for these raw materials is expected to surge as the global energy transition accelerates, irrespective of their origin.
While efforts to curb China’s mining dominance persist through diplomatic and legal channels, policymakers’ focus may be better directed towards strategies to keep pace with the growing demand for critical minerals, for the greater good of the planet.
SOURCE:Bloomberge.com
