Europe’s battery metals supply chain is undergoing a fundamental transformation, shifting away from a traditional focus on mining toward a more complex and strategically important layer: chemical refining and processed battery materials. Across Zambia, Brazil, and the Democratic Republic of Congo, new developments show how cobalt, nickel, and copper are increasingly valued not just as raw ores, but as refined chemical inputs essential for battery cathodes, electric vehicles, and industrial energy storage systems. This transition reflects a broader global reality: controlling mines alone is no longer enough. The real strategic leverage now lies in processing, refining, and chemical conversion capacity.
Zambia: Building a Cobalt Sulphate Supply Chain for Batteries
In Zambia, Kobaloni Energy is developing a dedicated production facility for battery-grade cobalt sulphate, a material directly used in cathode manufacturing.
The project is designed to produce approximately:
- 6,000 tonnes per year of cobalt contained in cobalt sulphate
- From an integrated refining operation located in Zambia
Unlike traditional mining operations that export raw concentrates, this project focuses on delivering ready-to-use battery chemicals, reducing reliance on external processing hubs. The development is supported by Vision Blue, the investment vehicle linked to former Xstrata CEO Mick Davis. In addition, the Africa Finance Corporation has reportedly expressed interest in providing around $100 million in financing. This model is increasingly important for Europe, as it enables access to traceable cobalt sulphate outside dominant Asian processing networks.
Brazil: Nickel and Cobalt Refining Through Brownfield Infrastructure
In Brazil, Jervois Global is advancing its São Miguel Paulista project, a restart of an existing industrial site designed to process intermediate cobalt and nickel materials into refined outputs.
The facility is expected to produce annually:
- 12,000 tonnes of refined nickel
- 2,000 tonnes of refined cobalt
The project is already fully permitted, giving it a significant advantage over greenfield developments that often face lengthy approval processes. Its strategic importance lies in its focus on refining rather than extraction, making it directly relevant to European battery supply chains that require consistent, high-purity chemical inputs. In a period of weak nickel and cobalt prices, such brownfield assets are increasingly viewed as more financially viable due to existing infrastructure and lower development risk.
Democratic Republic of Congo: The Scale Anchor of Global Supply
The Democratic Republic of Congo (DRC) remains the most important global source of cobalt and copper production, even as Europe seeks to diversify supply chains. Major industry players, including Glencore, are involved in large-scale operations such as the Mutanda and Kamoto Copper Company assets.
Recent industry discussions suggest that a consortium led by Orion Critical Mineral Consortium could acquire a significant minority stake in these operations, valuing the assets at approximately $9 billion.
Together, Mutanda and Kamoto produced roughly:
- 247,800 tonnes of copper
- 35,100 tonnes of cobalt
These volumes make the DRC one of the most critical suppliers for global copper-cobalt supply chains, even though the assets are not directly controlled by European policy frameworks. For Europe, the key issue is not ownership, but access, offtake agreements, and supply chain routing through trusted or aligned processing channels.
From Raw Materials to Battery Chemicals: Europe’s New Priority
The strategic direction of Europe’s battery-metal policy is becoming increasingly clear: chemical processing capacity now matters more than raw mineral exposure.
Each region plays a different role:
- Zambia focuses on battery-grade cobalt sulphate production
- Brazil provides refined nickel and cobalt output through existing industrial assets
- The DRC delivers large-scale raw material supply and global production volume
Together, they form a multi-layered supply system that feeds global battery manufacturing.
Market Reality: Prices, Risk, and Refining Economics
Despite their strategic importance, cobalt and nickel markets remain under pressure from:
- Excess global supply
- Weak price cycles
- High inventory levels
- Cost competition from large-scale producers
This means that not all projects are economically viable, even if they are strategically significant.
The most resilient assets are those that combine:
- Low production costs
- Long-term offtake agreements
- Traceable supply chains
- Existing infrastructure or permitted brownfield sites
- Policy-backed financing structures
Without these factors, even strategically critical projects may struggle to attract investment.
