A powerful cyclone has forced a halt to operations at Madagascar’s largest nickel and cobalt mine, tightening nerves across global battery markets.
Traders said the storm struck the east African island this week, disrupting production at Ambatovy and threatening export flows.
The company, owned by Sumitomo Corporation and Korea Mine Rehabilitation and Mineral Resources Corporation, produced about 28,000 metric tons of nickel in 2024.
It also mined roughly 2,500 tons of cobalt, a metal vital for electric vehicle batteries and aerospace components.
Ambatovy confirmed its processing plant in Toamasina sustained material damage after the cyclone tore across Madagascar’s eastern coast.
“Operations will resume once site integrity, safety conditions and environmental safeguards are fully verified,” the company told Reuters.
Traders warned exports could face prolonged disruption, as the port city of Toamasina was heavily hit by the storm.
Ambatovy produces nickel and cobalt briquettes, crushed and dissolved into sulphates for use in electric vehicle battery manufacturing.
Cobalt prices are steady near $26 per pound, but markets remain sensitive to supply shocks.
Prices have climbed about 160% since the Democratic Republic of Congo imposed an export ban last February.
Congo, the world’s top producer, later lifted the ban in October and replaced it with annual export quotas.
Analysts expect global cobalt mine supply to reach around 285,000 tons this year, with roughly 70% originating from Congo.