Chinese battery materials producer Xiamen Tungsten New Energy Materials (XTC) has struck a deal with CNGR Advanced Materials Co for the supply of cobalt tetroxide and ternary precursor materials, XTC announced on Wedmesday September 15.
Under the agreement, which runs from September 14, 2021, to December 31, 2023, CNGR is expected to supply to XTC with 20,000-25,000 tonnes per year of cobalt tetroxide and 15,000-35,000 tpy of ternary precursor materials.
Actual quantities and prices will be adjusted according to market conditions.
CNGR is one of China's leading battery materials manufacturers and produces ternary precursor materials - including nickel-cobalt-manganese (NCM) - which are used to produce lithium-ion batteries for electric vehicles (EVs), along with cobalt tetroxide, which is mostly used to produce lithium cobalt oxide (LCO) batteries for consumer electronics.
Cobalt tetroxide prices moved up in the week to September 10 on slightly improved downstream demand and higher global benchmark cobalt prices.
Fastmarkets' price assessment for
cobalt tetroxide 72.6% Co min, delivered China was 280,000-285,000 yuan ($43,498-44,275) per tonne on September 10, narrowing upward by 5,000 yuan from 275,000-285,000 yuan per tonne on September 8.