Managem has signed a memorandum of understanding (MoU) to supply French automaker Renault Group with cobalt sulphate. 

Through its Compagnie de Tifnout Tiranimine (CTT) subsidiary, and its stake in Pumpi operation in the DRC, Managem is already a key producer of cobalt.  CTT operates the Bou Azzer mine in Morocco which extracts cobalt as a primary product.  The underground mine supplies a hydrometallurgical plant in Guemassa, which produces cobalt in broken cathode form.  Some of that cobalt goes to Renault’s competitor, BMW, which signed a US$113M offtake deal with CTT which runs from 2020 to 2025.  Meanwhile, Pumpi produces 5ktpy of Co contained in hydroxide. 

Guemassa does not yet produce cobalt sulphate, although an engineering study is reportedly underway.  The plant is also undergoing feasibility study to assess the commercial viability of its modification for the recovery of cobalt, nickel, and lithium from black mass – a refinery feed comprised of recycled lithium-ion batteries.  This follows the January 2022 set up of a partnership between Glencore and Managem, involving a five-year tolling agreement for ~1.2ktpy of recycled cobalt as well as nickel hydroxide and lithium carbonate. 

The MoU highlights Renault’s commitment to build a sustainable, local supply chain.  It is building a major industrial complex in northern France, ‘Renault ElectriCity’, and aims to produce 400,000 EVs per year by 2025.  The Group aims to reduce the carbon footprint of its batteries by 20% by the same year and by 35% by 2030, compared to 2020.  Renault is aiming to become carbon neutral in Europe by 2040 and achieve carbon neutrality worldwide in 2050. 

However, the MoU also highlights that Renault’s ambitions will require the successful development of key local projects.  The Group has also signed deals with Vulcan Energy Resources to secure low-carbon lithium and Terrafame for low-carbon nickel sulphate.  The latter has been operational since 2021 and continues its ramp up.