The Democratic Republic of Congo (DRC) has extended the ban on cobalt exports, a vital component for electric vehicle batteries. This decision creates a fresh wave of uncertainty in the automotive industry.
Congo’s Cobalt Export Ban
Congo's mineral regulatory agency announced the extension of the temporary suspension on cobalt exports, which is a crucial element of lithium-ion batteries used in electric vehicles, smartphones, and other high-tech devices. The original ban, imposed in February 2025, was established to combat an oversupply of cobalt in the market. The new extension will keep the export ban in place until September 2025, keeping around 70% of the world's cobalt production unavailable to global markets.
Disagreement Among Mining Companies
The latest move from Congo has sparked disagreement among industry giants such as Glencore and CMOC Group. Glencore supports the introduction of export quotas to better manage supply and pricing, while CMOC advocates for the immediate lifting of the ban, arguing that it distorts global markets and undermines long-term supply relationships.
Cobalt Market Outlook
The extended export ban is expected to tighten global cobalt availability further, potentially driving prices upward in the second half of the year. With possibilities for speculative hoarding, some analysts predict price increases once exports resume. Regulators have promised to monitor stock levels and market conditions before the new three-month period concludes.
The cobalt export ban in Congo continues to have serious repercussions for both the automotive and mining sectors. The upcoming months will be crucial for determining the future strategies of both producers and regulators.
