DRC Extends Cobalt Export Ban Amid Market Shifts

By Darius Spearman (africanelements)

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Cobalt Export Ban Extended

The Democratic Republic of Congo (DRC) has once again made headlines in the global mineral market. The nation recently extended its ban on cobalt exports for another three months. This decision, announced by the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS), aims to address the ongoing issue of high stock levels in the market (africanews.com, fastmarkets.com).

The initial four-month ban, which began in February, was set to expire on June 22nd (africanews.com). This initial measure was a direct response to a significant global oversupply of cobalt. Before the ban, cobalt prices had plummeted to a nine-year low, reaching approximately $10 per pound, or about $22,000 per metric ton (reuters.com). The DRC hoped that by halting exports, it could stabilize the market and protect the interests of its own producers and investors (africanews.com). Indeed, the policy succeeded in raising global cobalt prices, though it also led to increased stockpiling within Congo and put a strain on government finances (spglobal.com). ARECOMS plans to make a further decision by the end of this new three-month period in September, which could involve modifying, extending, or lifting the suspension (fastmarkets.com).

Global Cobalt Market Impact

Cobalt is not just another mineral; it is a critical component in our modern world. This metal is essential for producing lithium-ion batteries, which power electric vehicles (EVs) and many of our everyday electronic devices, such as smartphones (africanews.com). The Democratic Republic of Congo holds a unique and powerful position in the global cobalt market. In 2024, the DRC produced an astounding 71.4% of the world’s cobalt, according to S&P Global Market Intelligence data (spglobal.com).

This dominance means that any policy changes in the DRC, such as an export ban, send ripples across global supply chains and industries that rely on cobalt. The stability of the cobalt market is crucial for the rapidly expanding EV sector and the broader electronics industry. Furthermore, the mining sector is a cornerstone of Congo’s economy. Combined cobalt and copper exports account for around 40% of the nation’s gross domestic product, as reported by Bloomberg in May 2020, citing International Monetary Fund data (spglobal.com). This highlights the profound economic stakes involved for the Congolese people and their government.

Export Policy Shift

The nature of the DRC’s cobalt export policy is undergoing a significant evolution. The initial four-month ban, implemented in February 2025, represented a complete halt of cobalt hydroxide shipments (mining.com). This drastic measure aimed to curb market oversupply and stabilize falling prices by entirely removing Congolese cobalt from the international market (spglobal.com).

However, the conversation has shifted towards a more nuanced approach: export quotas. Unlike a complete ban, export quotas would allow a controlled amount of cobalt to be exported. This system would offer the DRC greater flexibility to manage global supply and pricing, while still enabling some revenue generation from its most vital mineral (mining.com). Experts, such as Gil Michel-Garcia of EVelution Energy, anticipate that the DRC government will replace the ban with a quota system before the end of the year (spglobal.com). Furthermore, the DRC’s prime minister has expressed intentions to partner with Indonesia, another major cobalt producer, to collectively manage global supply and pricing (mining.com).

Mining Industry Perspectives

The cobalt export ban has sparked differing opinions among major mining companies, whose positions significantly influence policy decisions in the DRC. Glencore, the world’s second-largest cobalt producer, has publicly supported the introduction of export quotas (reuters.com). This stance suggests a preference for a managed supply system over a complete halt, which could provide more predictable market conditions.

In contrast, China’s CMOC Group, the world’s top cobalt mining company, has actively called for the ban to be lifted (reuters.com). CMOC’s motivation stems from concerns about running out of stockpiles, indicating the ban’s direct impact on their operational capacity. The DRC government initiated a review process on May 23rd, involving major stakeholders like Glencore, ERG, and CMOC, to assess the ban’s effectiveness (spglobal.com, mining.com). This consultation process underscores the influence these companies wield in shaping the DRC’s future cobalt policy. While the ban did succeed in raising global cobalt prices, it also led to significant stockpiling within Congo and “pinched government coffers,” highlighting the complex economic trade-offs for the nation (spglobal.com).

Mining Realities and Market Metrics

The cobalt export ban in the DRC also covers artisanal mining, which is a significant part of the country’s mining landscape. However, the available information does not detail the specific challenges faced by small-scale miners or the broader informal mining sector due to this ban. Understanding the impact on these local miners and their livelihoods is crucial for a complete picture of the ban’s socio-economic consequences.

Regarding market oversupply and stock levels, the data indicates these were key reasons for the ban. While the articles confirm the ban’s success in raising global cobalt prices, they do not provide quantitative data on how these stock levels are measured or the specific metrics used to define oversupply. The impact, however, is clear: the ban was intended to support prices by restricting supply, and it did so. It is also important to note that the provided information does not delve into environmental or social issues related to cobalt mining in the DRC, nor does it define technical terms like “semi-industrial mining” or “strategic minerals.” Furthermore, there is no mention of alternative sources of cobalt or substitute materials influencing market dynamics, beyond the DRC’s consideration of partnering with Indonesia to manage existing supply.

Future of Cobalt Exports

The global market’s response to the DRC’s cobalt export ban has been immediate and notable. Cobalt prices surged right after the suspension of exports in February 2025 (discoveryalert.com.au). This rapid increase demonstrates the direct and powerful influence of the DRC’s policies on international pricing. The market has remained cautious, with some sources holding back offers in anticipation of further price increases, reflecting the ongoing uncertainty (spglobal.com).

Commodity Insights analysts expect that this uncertainty surrounding the DRC’s cobalt export ban will continue to support prices in the second quarter of 2025, given the tight supply conditions (spglobal.com). The decision to extend the ban for another three months, with a further review expected by September, means that the global cobalt market will remain in a state of flux. How the DRC ultimately decides to manage its vast cobalt resources—whether through continued bans, a quota system, or other mechanisms—will profoundly shape the future of industries reliant on this critical mineral, from electric vehicles to consumer electronics, impacting economies and livelihoods worldwide.

ABOUT THE AUTHOR

Darius Spearman has been a professor of Black Studies at San Diego City College since 2007. He is the author of several books, including Between The Color Lines: A History of African Americans on the California Frontier Through 1890. You can visit Darius online at africanelements.org.