Chinese Nickel Producer Lygend Begins Cobalt Production in Indonesia

First Overseas Cobalt Refining by a Chinese Firm

In a significant milestone, Chinese nickel producer Ningbo Lygend began cobalt metal production on Indonesia’s Obi Island in early July. This marks the first instance of a Chinese refinery producing cobalt metal outside of China. The first phase of Lygend’s project has an annual production capacity of 4,000 tons, with the potential to increase to 6,000 tons per year.

“Whether and when the second phase—adding 2,000 tons annually—will begin construction depends on market conditions,” a source told Metalnomist. The cobalt will be shipped to China and various global markets.

Lygend Cobalt Production in Indonesia Tied to HPAL Expansion

Additionally, Lygend’s Indonesian subsidiary launched the third production line at its ONC nickel high-pressure acid leaching (HPAL) project on July 1. The HPAL facility is designed to produce mixed hydroxide precipitate (MHP), which can be further processed into cobalt sulfate, cobalt metal, and nickel sulfate.

Lygend produced approximately 7,000 tons of cobalt (metal equivalent) in 2023. That figure is expected to rise to around 10,000 tons this year.