Europe’s battery metals supply chain is shifting from a mining-led model toward chemical refining and processed battery materials. Developments in Zambia, Brazil and the Democratic Republic of Congo show cobalt, nickel and copper being positioned as inputs for battery cathodes and related industrial uses. The change places greater emphasis on processing, refining and chemical conversion capacity.
Zambia develops battery-grade cobalt sulphate production
In Zambia, Kobaloni Energy is developing a dedicated facility for battery-grade cobalt sulphate. The project targets output of about 6,000 tonnes per year of cobalt contained in cobalt sulphate. It is designed to be supported by an integrated refining operation located in Zambia.
The initiative is structured around producing ready-to-use battery chemicals rather than exporting raw concentrates. Financing support is linked to Vision Blue, an investment vehicle associated with former Xstrata CEO Mick Davis. The Africa Finance Corporation has reportedly expressed interest in providing around $100 million in financing.
Jervois advances São Miguel Paulista restart for refined outputs
In Brazil, Jervois Global is progressing the restart of the São Miguel Paulista project. The site is intended to process intermediate cobalt and nickel materials into refined outputs. Annual production is expected to reach 12,000 tonnes of refined nickel and 2,000 tonnes of refined cobalt.
The project is described as fully permitted. That status provides an advantage over greenfield developments that can face longer approval timelines. The focus on refining rather than extraction aligns with requirements for consistent, high-purity chemical inputs for battery supply chains.
DRC operations underpin copper-cobalt volumes for global markets
The Democratic Republic of Congo remains a major source of global cobalt and copper production. Industry players including Glencore operate large-scale assets such as Mutanda and the Kamoto Copper Company. Recent discussions indicate a consortium led by the Orion Critical Mineral Consortium could acquire a significant minority stake in these operations.
The potential transaction has been discussed at an asset valuation of approximately $9 billion. Combined, Mutanda and Kamoto produced roughly 247,800 tonnes of copper and 35,100 tonnes of cobalt. These volumes support global copper-cobalt supply chains even as European policy frameworks do not directly control the assets.
Chemical processing capacity becomes a key policy focus
A central theme in Europe’s battery-metal direction is the growing importance of chemical processing capacity relative to raw mineral exposure. Regional roles described across the supply chain include Zambia’s battery-grade cobalt sulphate production and Brazil’s refined nickel and cobalt outputs from existing industrial assets. The DRC continues to provide large-scale raw material supply and global production volume.
Together, these elements are presented as forming a multi-layered system feeding battery manufacturing. Access considerations are highlighted alongside ownership, including offtake agreements and supply chain routing through processing channels aligned with European needs. This includes the requirement for traceable material flows into downstream chemical conversion.
Cobalt and nickel markets face oversupply and price pressure
Cobalt and nickel markets remain under pressure from excess global supply, weak price cycles and high inventory levels. Cost competition from large-scale producers is also cited as a factor affecting market conditions. As a result, not all projects are described as economically viable even when they are strategically relevant.
The most resilient assets are those combining low production costs with long-term offtake agreements. Additional factors listed include traceable supply chains, existing infrastructure or permitted brownfield sites, and policy-backed financing structures. Without these elements, projects may struggle to attract investment despite their strategic positioning.
