Russian metals giant Nornickel is making moves to establish a joint venture with Chinese battery companies to produce nickel material from Russian semi-finished products, sources familiar with the matter revealed to Reuters.
CNGR Advanced Material and Brunp Recycling, a subsidiary of Chinese battery powerhouse CATL, are among the companies Nornickel has approached for this project. The aim is to shift a significant portion of production from Russia to China to evade Western sanctions imposed on Moscow due to the conflict in Ukraine.
This potential partnership would mark Nornickel’s third major initiative this year, following discussions on moving copper smelting operations to China and plans to construct a refinery for platinum group metals in Bahrain.
The proposed plant, which would be located in Hunan province in southern China, is expected to produce nickel sulphate from Russian nickel matte for use in electric vehicle batteries. Nornickel is reportedly willing to supply 50,000 metric tons of nickel annually to the plant, a significant portion of its current production output.
Despite the potential benefits of the partnership, some Chinese firms are cautious due to the risks associated with the ongoing sanctions against Russia. However, Nornickel’s production could offer a secure source of raw materials for Chinese companies that do not have access to nickel deposits in Indonesia, the top global producer of nickel.
With the global nickel market oversupplied and China heavily reliant on Indonesian nickel, this collaboration could offer stability in the uncertain landscape of international trade. Stay tuned for more updates as this story develops.
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