Nornickel in talks to build China nickel plant for battery sector, sources say
Adds CATL response in paragraph 9
By Siyi Liu and Polina Devitt
BEIJING/LONDON, July 18 (Reuters) -Russia's Nornickel is in talks with several Chinese battery companies to build a plant jointly producing nickel material from Russian semi-finished products, three sources with knowledge of the matter told Reuters.
CNGR Advanced Material 300919.SZ and Brunp Recycling, a subsidiary of Chinese battery giant CATL 300750.SZ, are among the firms approached by Nornickel.
The metals giant is in the midst of trying to move significant amounts of production away from Russia to major consumer China, bidding to circumvent Western sanctions against Moscow over its war with Ukraine.
If the project advances, it would be the third such major initiative by Nornickel this year. It is in talks to move its copper smelting to China. The company also plans to build a platinum group metals refinery in Bahrain.
According to one of the sources, the Hunan province in southern China, where many of Chinese battery sector firms are based, is considered as the main location, however no final decision has been made.
The plant would produce nickel sulphate, a form of nickel used to make batteries for electric vehicles, from Russian nickel matte, a semi-finished product, another source said.
Nornickel is ready to supply 50,000 metric tons of nickel a year, about a quarter of its current annual production, to the future plant, the source added. The company produced 209,000 tons of nickel in 2023, 6% of the global output.
Nornickel and CNGR declined to comment. Brunp did not reply to a Reuters' request for comment.
There are "no talks between Nornickel and CATL or any of our subsidiaries regarding a nickel plant," Fred Zhang, international communications manager at CATL, said in a statement on Friday, a day after this article was published.
Nornickel, a major producer of high-grade nickel, said in March that it would seek ways to integrate its nickel into the global battery sector as it reshuffles sales to ease the effect of sanctions against Russia on its own business.
It did not disclose further details at that time.
Until Russia was sanctioned by the West in 2022, Nornickel sold mainly refined Russia-made products.
However, sanctions against Moscow prompted some Western producers to avoid Russian metal and complicated payments,prompting Nornickel to try to transfer some final stages of its production outside Russia.
Two sources said the Chinese firms are wary of the risks around the sanctions backdrop and may not be willing to work with Nornickel due to exposure to the global export market - with a chance that Western buyers might turn down supplies if they have a direct connection to Russia.
The global nickel market is oversupplied with primary output estimated at 3.55 million tons this year, and China's battery industry often sources its nickel from top producer Indonesia, accounting for 42% of global primary supplies.
Nornickel's production will be a guaranteed source of long-term raw material for those Chinese firms who do not own nickel deposits in Indonesia, one source said.
Reporting by Siyi Liu and Polina Devitt; Editing by Veronica Brown and David Evans
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
