The Democratic Republic of Congo (DRC), which produces nearly 70% of the world’s cobalt, has signaled plans to impose stricter controls on cobalt exports once its current four-month export ban expires. This move aims to stabilize the global market, which has been under pressure due to oversupply and falling prices.
Since February, Kinshasa halted outbound shipments of cobalt — a strategic mineral used primarily in lithium-ion batteries that power electric vehicles, smartphones, and other electronics — in a bid to address the global glut that severely affected market prices.
Speaking on Wednesday, Patrick Luabeya, president of the government agency overseeing strategic minerals, said that while the ban had helped reduce excess supply, a complete market correction had yet to be achieved.
“The stockpiles that had depressed prices have been significantly reduced, but they are not yet exhausted,” Luabeya said.
“Our next move will inevitably imply a strict limitation of exports — in whole or in part — until a balanced relationship between supply and demand is restored.”
He added that the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets would engage stakeholders in June to determine the appropriate path forward.
This potential extension or partial continuation of the ban marks a critical moment for global supply chains. Cobalt is considered an indispensable material in the green energy transition, and any prolonged restriction could affect production plans for major electric vehicle manufacturers and tech firms worldwide.
Impact on Prices and Industry Reaction
Global cobalt prices have dropped more than 60% since early 2023 due to a surge in production not only from the DRC but also from emerging markets like Indonesia, combined with slower-than-expected demand growth in battery manufacturing.
DRC officials believe that the unregulated flow of cobalt had left small-scale miners and local investors vulnerable, while enabling multinational corporations to buy at unsustainably low prices.
Industry insiders believe the DRC’s decision to reassess export volumes may give producers some breathing room.
“This is a bold but necessary move,” said Jean-Claude Tshisekedi, a mining economist based in Lubumbashi.
“We are talking about the backbone of the country’s export economy. Price stabilization will benefit everyone in the long term, including international buyers.”
Consultations Planned with Industry Stakeholders
According to Luabeya, the upcoming June consultations will involve both large-scale operators and artisanal miners. The goal is to establish an export quota or phased strategy that supports domestic economic stability while avoiding a price shock in global markets.
“We must prioritize the interests of Congolese producers and long-term investors while acting as responsible global suppliers,” Luabeya said.
“This will be a consultative process, not a unilateral imposition.”
Global Stakes: Supply Chain and Strategic Concerns
Cobalt has become a strategic mineral in global trade, and the DRC’s policies have growing geopolitical relevance. The metal is central to decarbonization and digital technologies, and governments and corporations alike are now seeking to diversify their cobalt sources.
However, the DRC remains unrivaled in terms of volume and quality. As such, any prolonged restrictions will ripple through the global supply chain. EV manufacturers like Tesla, BYD, and Volkswagen, as well as electronics giants like Apple and Samsung, rely heavily on the metal.
“The DRC’s export policies are now a global economic issue,” said Dr. Elisabeth Mbeki, an energy transition expert based in Johannesburg.
“Every major economy with a green agenda is watching how Kinshasa proceeds.”
Broader Economic Context
The DRC’s economy is heavily reliant on mining, with cobalt, copper, and gold making up the bulk of its foreign exchange earnings. President Félix Tshisekedi’s administration has made it clear that it wants more control and transparency in the mining sector.
The export ban, which was controversial when first introduced, is part of broader efforts to ensure that mineral wealth translates into tangible development outcomes for Congolese citizens.
“We are not just trying to manage markets,” said Luabeya.
“We are trying to create a system where our natural resources empower our people, not just multinational profit sheets.”
What’s Next
With the June consultation around the corner, miners and investors await further clarity. While the government has not provided a firm timeline for lifting the ban, it has left the door open for a flexible, targeted approach that balances domestic needs and international demand.
For now, the global cobalt market remains in a holding pattern — watching closely as the DRC prepares its next strategic move.
