DRC Suspends Cobalt Exports for Four Months to Stabilize Market

The Democratic Republic of Congo (DRC) has announced a four-month suspension of cobalt exports to address an oversupply that has driven down global prices.

The measure, which took effect on February 22, aims to align exports with global demand and stabilize the market.

As the world’s leading cobalt producer, supplying about 75% of global output, the DRC has seen production surge in recent years, particularly due to increased output from major mining operations.

However, this rapid growth has led to an imbalance between supply and demand, causing cobalt prices to drop to their lowest levels in over two decades.

The Authority for the Regulation and Control of Strategic Mineral Substances Markets (ARECOMS) confirmed that the suspension applies to all producers, including industrial, semi-industrial, artisanal, and small-scale mining operations.

However, the restriction does not affect copper exports, as cobalt is mined primarily as a byproduct of copper production.

According to ARECOMS Chairman Patrick Luabeya, the government had been closely monitoring market dynamics for over a year and determined that immediate action was necessary.

The uncontrolled flow of cobalt, including illegal mining and unregulated exports, had led to an oversaturated market, creating challenges for both domestic and international investors.

The decision will be reviewed after three months, and authorities may adjust or lift the suspension based on market conditions. Meanwhile, the government is exploring additional measures to encourage more in-country processing of strategic minerals and establish a transparent and fair pricing system for cobalt exports.

This move underscores the DRC’s strategic role in the global battery supply chain, particularly as cobalt remains essential for electric vehicle batteries, smartphones, and other high-tech applications.

The suspension signals the government’s intent to regulate supply, protect its mining sector, and maintain its dominance in the global cobalt market.