HUAYOU COBALT(SH:603799) Mei Ri Jing Ji Xin Wen·2025-10-10 07:44Core Viewpoint - The recent stock price surge of Huayou Cobalt Co., Ltd. is attributed to significant agreements with LG Energy Solution and the impact of policy changes in the Democratic Republic of Congo affecting cobalt supply [1][2][3] Company Developments - Huayou Cobalt announced a supply agreement with LGES for approximately 76,000 tons of ternary precursor products from 2026 to 2030 [1] - The company also signed a basic procurement contract with LGES for 88,000 tons of ternary cathode materials during the same period [3] - The stock price of Huayou Cobalt increased by 36.33% from September 19 to October 9, with a notable six consecutive days of gains [2] Market Conditions - Cobalt prices have surged significantly, with electrolytic cobalt reaching 343,000 yuan per ton as of October 1, marking a 29% increase since September and doubling since the beginning of the year [1][6] - The Democratic Republic of Congo, which produces about 70% of the world's cobalt, has shifted from an export ban to an export quota system, impacting global supply [5][6] Future Outlook - The agreements with LGES are expected to positively influence Huayou Cobalt's performance from 2026 to 2030, enhancing overall profitability [4] - Analysts predict a cobalt shortage in the coming years, with effective global supply expected to drop from 282,000 tons in 2025 to 185,000 tons [5][6] - Despite potential supply from countries like Indonesia, Australia, and Canada, short-term gaps in cobalt supply are anticipated due to various operational challenges [7]