CHINA is depending too much on the Democratic Republic of Congo (DRC) for cobalt, a crucial component in electric vehicle (EV) batteries, and should take steps to ensure security of supply, delegates said at an industry conference yesterday.

China, the world’s top cobalt consumer, is “over-reliant” on the African country, which accounts for around half of the global supply of cobalt, said Wu Lijue, chairman of Guangdong Jiana Energy Technology Co., a supplier of cobalt salts and other materials for EV battery cathodes.

Jiana, as well as other Chinese firms including Huayou Cobalt Co. and China Molybdenum, have invested in cobalt-bearing assets in the DRC.

Speaking on the sidelines of the China International Nickel and Cobalt Industry Forum in Guangzhou, Wu said that China should consider upstream cobalt investments in Canada and Australia. Jiana has looked at potential assets in Canada, he said, without giving further details.

Xu Aidong, secretary general of Antaike’s cobalt branch, said China “should develop some new channels” in its cobalt supply chain, by turning to other cobalt-producing countries such as Australia and stepping up recycling.

Wu noted that China has only 1 percent of global cobalt reserves and was vulnerable to price fluctuations due to its hefty reliance on imports.

Driven by the EV boom, China’s cobalt consumption is set to rise by 17.4 percent this year to 54,000 tons, according to Ding Xuequan, vice president of the China Nonferrous Metals Industry Association.

(SD-Agencies)