Time: 2024-07-25
Nornickel , a Russian company , is exploring the possibility of establishing a nickel production facility in China , with the aim of targeting the growing battery sector . The company is in discussions with several Chinese battery manufacturers to build a plant that will process Russian nickel matte into nickel sulphate , a crucial component in electric vehicle batteries . One source mentioned that Nornickel plans to supply 50,000 tonnes of nickel annually to the proposed plant . CNGR Advanced Material and Brunp Recycling , a subsidiary of CATL , are some of the companies involved in the talks with Nornickel . The potential location for the new plant is Hunan province , known for being a hub for China 's battery industry.
The move by Nornickel to shift a significant portion of its production to China is a strategic response to the Western sanctions imposed on Russia following its invasion of Ukraine . These sanctions have disrupted sales routes for Nornickel , prompting the company to explore ways to integrate its nickel into the global battery supply chain by relocating some of its production processes outside of Russia . Earlier this year , Nornickel made headlines for planning to transfer its copper production to China . Despite the potential benefits , Chinese companies are reportedly cautious due to the sanctions landscape and the risk of alienating Western buyers who may reject supplies with direct ties to Russia.
In 2023 , Nornickel produced 209,000 tonnes of nickel , representing 6 % of the global output . Reuters also reported that Nornickel is considering restarting one of the two furnaces at its Nadezhda Smelter in early August 2024 . This development highlights the company 's continued efforts to adapt to the changing global market conditions and establish a presence in key regions such as China . By collaborating with Chinese partners and exploring new production facilities , Nornickel aims to secure its position in the evolving battery sector and maintain a competitive edge in the industry . The partnership with companies like CNGR Advanced Material and Brunp Recycling demonstrates Nornickel 's commitment to expanding its operations and diversifying its supply chain to meet the growing demand for electric vehicle batteries in China and beyond.
Overall , Nornickel 's strategic shift towards establishing a nickel production facility in China reflects the company 's proactive approach to navigating geopolitical challenges and capitalizing on emerging opportunities in the global battery market . As the demand for electric vehicles continues to rise , Nornickel 's collaboration with Chinese partners and its plans to expand its presence in key regions like Hunan province underscore its commitment to innovation and sustainability in the evolving energy landscape.
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