Nornickel Plans Nickel Sulfate Production in China with CATL and CNGR Partners — Reuters

Russian mining giant Nornickel is negotiating with several Chinese battery companies to jointly establish a nickel sulfate production plant, which will be used in manufacturing batteries for electric vehicles, Reuters reported citing unnamed sources. Nornickel approached Brunp Recycling, a subsidiary of CATL, and CNGR Advanced Material regarding this project, the agency reported.

Nornickel, which produced 209,000 tons of nickel in 2023 — accounting for 6% of the global supply—could supply up to 50,000 tons of nickel annually to the new plant. This amount represents about a quarter of the company's current production capacity.

The move aligns with Nornickel's strategy to shift more of its production to China, aiming to integrate nickel into the global battery sector and mitigate the impact of Western sanctions on Russia. The company has previously announced plans to relocate copper smelting operations to China and is discussing a joint venture with China Copper to build a copper smelter in the country.

The proposed nickel sulfate plant may be located in the southern Chinese province of Hunan, although the exact location and product line are yet to be finalized. This potential collaboration with CNGR Advanced Material and Brunp Recycling could provide Nornickel with a strong foothold in the Chinese market, which consumes 50-60% of the world's nickel, primarily for stainless steel, heat-resistant alloys, and battery production.

CNGR Advanced Material specializes in lithium-ion battery materials and recently launched a nickel plant in Indonesia with Rigqueza International. Brunp Recycling, which recycles batteries, is a subsidiary of CATL, the world's largest battery manufacturer. This partnership could enhance Nornickel's nickel sales to China by securing both a production site and a customer base, solidifying its position in the rapidly growing Chinese market.