Commodity trading giant Glencore recently announced a partnership with Moroccan mining company Managem to produce cobalt from recycled battery material at a factory in southwestern Morocco.
The feasibility study for the project, which will be completed by the end of the first quarter, will assess the commercial viability of existing plants and the carbon footprint that may be generated during the production process.
If the project is feasible, Glencore will sign a five-year contract with Managem's CTT wet smelter to produce about 1200 tons of recycled cobalt a year, as well as nickel hydroxide and lithium carbonate.
Glencore will supply the CTT plant with raw materials containing cobalt, lithium and nickel produced from recycled battery electrodes, which are produced by Glencore's plants in Sudbury, Canada and Nikkelverk, Norway.
Managem will provide metal recycling technology to Glencore, which is responsible for promoting recycled products to customers.
Imad Toumi, chairman and CEO of Managem, said in a statement that demand for cobalt is expected to increase significantly over the next decade, driven by the green energy transformation, with most participants in the supply chain looking for materials that can ensure sustainable procurement.
David Brocas, Glencore's chief cobalt trader, said primary / recycled cobalt and other future-oriented commodities would play a key role in energy consumption decarbonization and the electric car revolution as the world struggles to address the climate change crisis.
The green shift has pushed up demand for battery metals such as cobalt, lithium and nickel, while the novel coronavirus epidemic exacerbated supply constraints, with cobalt prices surging last year to their highest level since 2018.
Roskill analysts predict that cobalt demand will increase from 141000 tons in 2020 to 270000 tons by 2030, which is difficult for the market to meet, so the shortage of cobalt supply will not be reversed in the short term.
Commodities research firm CRU predicts that cobalt demand for electric cars will exceed 120000 tons, or nearly 45% of the total, by 2025, compared with nearly 39000 tons, or 27%, in 2020.
