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Released February 17, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Sumitomo Metal Mining Company Limited (SMM) expects the global battery market to grow significantly in the coming decades, and is rapidly shifting the bulk of its long-term investments toward the development of nickel-based cathode materials. The company, which is part of Sumitomo Group (Tokyo, Japan), is tripling its capital expenditures (capex) over the next three years to expand its production capacity of nickel and cathode materials used in batteries. Industrial Info is tracking US$2.7 billion worth of active projects from SMM, the majority of which is attributed to nickel-related developments.
Click on the image at right for a graph detailing SMM's active projects worldwide, by industry sector.
In a news conference announcing SMM's new three-year business plan, which runs through March 2025, SMM President Akira Nozaki told reporters that the company's "long-term goal to become a global leader in nonferrous metals remains unchanged," and that it plans to "maintain a leading position in nickel-based cathode materials market by expanding production capacity," according to Reuters. SMM says it is planning 494 billion yen (US$4.3 billion) in capital spending over the next three years, up from 164 billion yen (US$1.43 billion) over the past three years.
SMM produced 81,000 tons of nickel in 2021, and aims to increase its annual average to 87,000 tons by the end of 2024. In the longer term, the company wants to produce 150,000 tons per year by the end of 2030, a key part of which is the Pomalaa Nickel Mine & Refinery on Sulawesi Island, Indonesia, which SMM is developing in a partnership with Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil). In a recent presentation to investors, the company said it plans to launch and move into full operations at Pomalaa "in the latter half of the 2020s."
Specifically, SMM hopes to speed up work on Pomalaa by making an investment decision "as early as possible," Nozaki said. The project, which has faced repeated setbacks due to the COVID-19 pandemic, would include an aboveground mine that is expected to produce 2 million tons per year of nickel ore; a nickel smelter that will produce a mixed sulfide of nickel and cobalt, which is used in electric vehicle (EV) batteries; and an expansion of the facility's refinery to handle the new product.
Upon its full completion, Pomalaa is expected to produce 40,000 tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed project reports on the mine, smelter and refinery.
SMM also is increasing its internal supply of raw materials for projects such as its nickel-based cathode materials plant in Niihama, Japan, which is expected to cater to the EV market. The company also is planning a revamp at its metallic powder compounds plant in Niihama, to increase its capacity of lithium nickel oxide from 4,550 to 4,850 tons per month. Subscribers can learn more from Industrial Info's reports on the cathode materials and metallic powder compounds projects.
In the market for copper, another key component in battery technology, SMM expects to benefit from its stake in Teck Resources Limited's (NYSE:TECK) (Vancouver, British Columbia) second-phase expansion of its Quebrada Blanca Copper Mine in northern Chile, which is expected to wrap up and begin operations in the second half of 2022. By the end of 2024, the mine is projected to produce 284,000 tons of copper, of which 71,000 tons are earmarked for SMM. Construction is expected to begin about one year behind the previously announced start date, after the project was suspended due to COVID-19.
The second phase of Quebrada Blanca could face more setbacks, however, after Teck announced at the end of January that the overall cost of the project could increase by between US$900 million and US$1.1 billion due to the COVID-related delays, up from Teck's previous estimate of a US$600 million increase. Teck said the added costs were mostly tied to inflationary cost pressures, including diesel prices. Subscribers can learn more about the copper mine expansion from Industrial Info's project report; for a full list of projects related to Teck's expansion of Quebrada Blanca, click here.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Click on the image at right for a graph detailing SMM's active projects worldwide, by industry sector.In a news conference announcing SMM's new three-year business plan, which runs through March 2025, SMM President Akira Nozaki told reporters that the company's "long-term goal to become a global leader in nonferrous metals remains unchanged," and that it plans to "maintain a leading position in nickel-based cathode materials market by expanding production capacity," according to Reuters. SMM says it is planning 494 billion yen (US$4.3 billion) in capital spending over the next three years, up from 164 billion yen (US$1.43 billion) over the past three years.
SMM produced 81,000 tons of nickel in 2021, and aims to increase its annual average to 87,000 tons by the end of 2024. In the longer term, the company wants to produce 150,000 tons per year by the end of 2030, a key part of which is the Pomalaa Nickel Mine & Refinery on Sulawesi Island, Indonesia, which SMM is developing in a partnership with Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil). In a recent presentation to investors, the company said it plans to launch and move into full operations at Pomalaa "in the latter half of the 2020s."
Specifically, SMM hopes to speed up work on Pomalaa by making an investment decision "as early as possible," Nozaki said. The project, which has faced repeated setbacks due to the COVID-19 pandemic, would include an aboveground mine that is expected to produce 2 million tons per year of nickel ore; a nickel smelter that will produce a mixed sulfide of nickel and cobalt, which is used in electric vehicle (EV) batteries; and an expansion of the facility's refinery to handle the new product.
Upon its full completion, Pomalaa is expected to produce 40,000 tons per year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed project reports on the mine, smelter and refinery.
SMM also is increasing its internal supply of raw materials for projects such as its nickel-based cathode materials plant in Niihama, Japan, which is expected to cater to the EV market. The company also is planning a revamp at its metallic powder compounds plant in Niihama, to increase its capacity of lithium nickel oxide from 4,550 to 4,850 tons per month. Subscribers can learn more from Industrial Info's reports on the cathode materials and metallic powder compounds projects.
In the market for copper, another key component in battery technology, SMM expects to benefit from its stake in Teck Resources Limited's (NYSE:TECK) (Vancouver, British Columbia) second-phase expansion of its Quebrada Blanca Copper Mine in northern Chile, which is expected to wrap up and begin operations in the second half of 2022. By the end of 2024, the mine is projected to produce 284,000 tons of copper, of which 71,000 tons are earmarked for SMM. Construction is expected to begin about one year behind the previously announced start date, after the project was suspended due to COVID-19.
The second phase of Quebrada Blanca could face more setbacks, however, after Teck announced at the end of January that the overall cost of the project could increase by between US$900 million and US$1.1 billion due to the COVID-related delays, up from Teck's previous estimate of a US$600 million increase. Teck said the added costs were mostly tied to inflationary cost pressures, including diesel prices. Subscribers can learn more about the copper mine expansion from Industrial Info's project report; for a full list of projects related to Teck's expansion of Quebrada Blanca, click here.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
