Tengyuan Cobalt Industry, a Chinese manufacturer of electric vehicle battery materials, will invest CNY980 million (USD134.2 million) to build a new copper and cobalt plant in the DRC, aimed at boosting access to critical raw materials and expanding production capacity.
Key facts
-
Investment: CNY980 million (USD134.2 million)
-
Location: Lualaba province, southern DRC
-
JV Partners: Tengyuan (55%), SAWA Congo Mining affiliate (40%), Employee platform (5%)
-
Expected Output: 30,000 tonnes of refined copper, 2,000 tonnes of cobalt salt annually
-
Copper facility cost: USD100 million
-
Construction timeline: 18 months
Joint venture to develop new Ccpper and cobalt plant in the DRC
The Ganzhou-based company announced that it will collaborate with SAWA Congo Mining, a Chinese-owned conglomerate with over 20 years of experience in the region. Tengyuan believes the joint venture will secure stable supplies of high-quality raw materials, increase production capacity, and improve cost efficiency.
This new development follows Tengyuan’s first DRC plant, completed in early 2023. That wholly owned facility already produces 60,000 tonnes of refined copper and 10,000 tonnes of cobalt salts annually.
Expansion comes as copper demand rises
Once operational, the new copper and cobalt plant in the DRC is expected to produce 30,000 tons of refined copper and 2,000 tons of cobalt salt products annually. Of the total investment, USD100 million will go specifically towards copper refining. Construction is expected to take 18 months, with full production capacity targeted within three years.
Tengyuan will control a 55% stake in the joint venture, while SAWA Congo Mining’s affiliate will hold 40%, and a 5% share will be reserved for employees via a shareholding platform. SAWA has been supplying raw materials to Tengyuan since October 2021 and maintains strong ties with the Congolese government.
Challenging first quarter dampens share price
Despite its expansion plans, Tengyuan reported a difficult first quarter, with net profit falling 14% year-on-year to CNY123 million and revenue dropping 4% to CNY1.5 billion (USD200 million). The company blamed the decline on rising R&D and management costs, combined with plummeting cobalt salt prices.
However, its annual report revealed an 81% surge in 2024 net profit, buoyed by greater output volumes. Last year, Tengyuan produced 54,500 tonnes of refined copper, making up nearly 53% of its total output. Cobalt salts contributed 37% of revenue, with the rest coming from nickel salts, lithium salts, and ternary lithium battery precursors. Over half of its total sales came from international markets.
Market reaction and cobalt export ban
Tengyuan made no public comments on the DRC’s temporary cobalt salt export ban imposed in February. The restriction, aimed at stabilising market prices, does not apply to cobalt mining or copper exports—relevant given that cobalt and copper are typically co-mined. The export suspension helped push cobalt sulfate prices up nearly 90%, reaching around CNY50,000 per tonne (USD6,849) last week, according to Mysteel data.
Nevertheless, the weak quarterly earnings weighed on investor sentiment. Tengyuan’s shares [SHE: 301219] fell 2.5% to CNY46.17 (USD6.30), even as the broader ChiNext Index gained 1.6%.
