DRC Explores Export Quotas to Stabilize Cobalt Prices
The Democratic Republic of Congo, the world’s leading cobalt producer, is exploring options to boost the price of the battery metal, including the potential implementation of export quotas.
This move comes as cobalt prices have plummeted by two-thirds since mid-2022 due to an oversupply situation exacerbated by excessive production from Congo, which accounts for about 75% of global cobalt supply.
President Felix Tshisekedi has expressed concerns about the price slump and has tasked the government with investigating measures to ensure a fair price for cobalt.
The government is now seeking advice from international industry organizations to formulate potential policies, with a proposal expected to be presented to the new government following Tshisekedi’s re-election.
While some state officials advocate for export restrictions to address oversupply, others are cautious, fearing it could deter the use of cobalt in batteries.
This deliberation comes at a time when electric vehicle batteries without cobalt are gaining traction, although cobalt demand from the EV sector is projected to rise significantly in the coming years.
Stakeholders across the cobalt supply chain, including miners, refineries, battery manufacturers, and automakers, are closely monitoring these developments.
Major cobalt producers like CMOC Group Ltd., Glencore Plc, and Eurasian Resources Group are key players in this discussion, although they have refrained from commenting on the potential measures.
