Zhejiang Huayou Cobalt Co. Ltd, a Chinese supplier of battery materials, expects record earnings for the first half of 2025.

The company projects net income between 2.6 billion yuan (US$360 million) and 2.8 billion yuan (US$390.3 million), representing at least a 56% increase from the same period last year, according to its preliminary earnings report released on July 7, 2025.

The growth is attributed to increased production at nickel-cobalt projects in Indonesia.

Output at the Huafei project exceeded planned capacity, while production at the Huayue project remained stable.

The company also noted lower costs and reduced reliance on third-party raw materials.

Additionally, a recovery in global cobalt prices has supported the earnings increase.

Prices have risen since February, following an export ban from the Democratic Republic of Congo, a major supplier of cobalt.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Congo’s export ban reshaped the cobalt market in Huayou’s favor

Huayou’s record profits are directly linked to the Democratic Republic of Congo’s cobalt export restrictions implemented earlier this year.

The DRC controls approximately 70% of global cobalt production, giving its policy decisions significant impact on worldwide supply and pricing 1.

This export ban came at a strategic time for Huayou, as the cobalt market had been experiencing a significant surplus, growing from 6,700 tonnes in 2022 to 14,200 tonnes in 2023 2.

The resulting price increases reversed a lengthy downward trend in cobalt prices throughout 2023, creating a favorable pricing environment for established producers with secure supply chains.

Huayou’s ability to reduce reliance on third-party raw materials (mentioned in the original article) further amplified these market advantages, allowing them to capture more value from the price increases while competitors struggled with supply constraints.

This dynamic demonstrates how regulatory decisions in resource-rich countries can significantly alter the competitive landscape in critical mineral markets, often benefiting companies with diversified supply sources.