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Zhejiang Province Shutters Factories Due to COVID-19, Raising Concerns About the DRC-to-China Cobalt Supply Chain

File image of Zhejiang Zhongjin Greatpower Lithium Battery Industry Co., LTD., one of China's largest facilities for processing the cobalt used to make EV batteries. The factory shut down this week due to COVID restrictions imposed by authorities in Zhejiang province.

The global cobalt supply chain is bracing for the impact from the closure of three of China’s largest processing factories in eastern Zhejiang province in response to an outbreak of COVID-19. 

Provincial authorities shuttered more than a dozen massive factories in the area in response to the detection of 173 locally-transmitted COVID cases last week, according to Reuters. While those numbers may seem low compared to other countries, China’s pursuing a “Zero COVID” policy and often employs extreme measures in response to even the slightest spread of infection.

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