(Bloomberg) -- China’s CMOC Group Ltd., the world’s biggest cobalt producer, expects supply pressures to start easing in the second half of this year.

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Cobalt — used in batteries and alloys — has been in the doldrums as a wave of new production overwhelmed demand. Benchmark prices for the metal have collapsed to near an eight-year low, according to Fastmarkets data. Growth in global supply should gradually moderate, according to CMOC.

“Global cobalt resources are concentrated, and after the existing supply increment is released, it is expected that there will be no new resources for a long time,” CMOC said as it announced record first-half profit. “The medium- and long-term price will be enhanced in a healthy and effective manner for a long run.”

The Chinese mining giant, which counts the world’s largest battery maker Contemporary Amperex Technology Co. as one of its shareholders, reported a seven-fold jump in earnings to 5.4 billion yuan ($757 million) from the year-earlier period.

CMOC doubled its first-half cobalt output to 54,024 tons as it ramped-up two huge mines in Democratic Republic of Congo, where it churns out the metal as a by-product of extracting copper. The Chinese company last year leapfrogged Glencore Plc to become the No. 1 cobalt producer.

The company also doubled first-half copper production to 313,788 tons. Prices will get “strong support” from a gradual recovery in the Chinese economy and property market, as well as a an easing monetary environment, CMOC said. The energy transition, AI and power grid expansion will also boost demand.

CMOC’s metals trading arm IXM posted first-half profit of 664 million yuan on operating revenue of 93.9 billion yuan.

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