Congo Cobalt Exports Halt Shakes Global Supply Chain
TLDR
- The Democratic Republic of Congo (DRC) has halted all cobalt exports for at least four months
- The ban follows President Felix Tshisekedi’s call to rein in oversupply and stabilize falling prices
- Congo accounts for about 75% of global cobalt production, with China’s CMOC Group alone responsible for over 40% of supply
The Democratic Republic of Congo (DRC) has halted all cobalt exports for at least four months, disrupting the market for a critical material used in electric vehicle (EV) batteries.
The ban follows President Felix Tshisekedi’s call to rein in oversupply and stabilize falling prices. The regulator overseeing strategic minerals said action was needed as excessive production threatened Congo’s interests.
Congo accounts for about 75% of global cobalt production, with China’s CMOC Group alone responsible for over 40% of supply. Increased output from CMOC’s mines had driven a supply glut and price collapse.
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Key Takeaways
The halt could drive up cobalt prices in the short term. However, it may also accelerate a shift toward cobalt-free EV batteries, as manufacturers seek to reduce reliance on a single-country supply chain. The enforcement of the ban, its impact on global inventories, and the potential benefit to Indonesia, the world’s second-largest cobalt producer, remain key uncertainties.
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