Chinese, Luxembourg firms sign cobalt production deal at BRI Forum

Eurasian Resources Group, a diversified natural resources group based in Luxembourg, signed an agreement with China's BGRIMM Technology Group, an institute in mineral and material industries worldwide, in relation to a cobalt beneficiation facility, which ERG is building in the Democratic Republic of the Congo, at the third Belt and Road Forum for International Cooperation in Beijing.

This production facility is planned to be commissioned by the end of 2024 and cobalt hydroxide should be provided from ERG's DRC-based Metalkol, one of the world's largest producers for the battery industry, and one of the largest suppliers of cobalt to China.

The agreement between the two was signed on October 17th.

"ERG has been attending the BRI Forum every year since its inception, because we know it is where some of the most important decisions for the global industry are made," said Benedikt Sobotka, CEO of ERG. "It is no different this time that ERG's agreement with BGRIMM to build a high-quality cobalt beneficiation facility is much needed for critical mineral mining and processing industry and for the green energy transition."

"It is very exciting to help increase the overall investment in cobalt beneficiation in the DRC. This will also lead to further improvement of infrastructure and bring many benefits for local communities in the country, which is a vital region for metals and mining and a key building block for the cobalt industry," added Sobotka.

ERG has further developed its portfolio of assets both in the DRC and globally to produce high quality materials for the li-ion battery sector.

At Metalkol, ERG's flagship operation, the group has expanded the production capacity ten-fold in the last four years. ERG is also developing its another key asset in the DRC, which has some of the world's largest known copper and cobalt resources.

In this vein, the cobalt beneficiation facility, which ERG is building up with its Chinese partner BGRIMM, provides important addition to its portfolio of assets producing key battery materials as it should deliver high purity cobalt hydroxide tailored for the battery market.

It will further strengthen its position as a strategic supplier of traceable materials for the electric vehicle industry.

China accounted for around two-thirds of global sales of full EVs last year. According to the China Association of Automobile Manufacturers, 26.86 million vehicles were sold in 2022, with 6.89 million units being EVs. Sales of EVs almost doubled, surging by 93.4 percent year over year, thanks to cheap electricity and favorable government policy in China.