Congo’s Export Ban Sends Cobalt Prices Soaring

Zim Now Writer

Cobalt prices are back on the rise after the Democratic Republic of Congo extended its ban on exporting cobalt concentrate, sparking concerns over global supply.

On Monday, cobalt futures on China’s Wuxi Stainless Steel Exchange jumped more than 9%, reaching 254 yuan (US$35.34) per kilogram—the highest price since mid-March.

The DRC, which accounts for over 80% of the world’s cobalt production, first introduced the export restrictions in February.

With the extension, the ban will now remain in place for at least seven months in total. Analysts estimate that more than 100,000 tonnes of cobalt could be kept off global markets during this time.

Cobalt, primarily a byproduct of copper mining in the DRC, is essential in producing batteries for electric vehicles. While demand from the EV sector has been relatively muted in recent months, supply disruptions are tightening the market.

Top miner CMOC Group said its operations at the Tenke Fungurume and Kisanfu mines won’t be significantly impacted by the ban. However, the global market tells a different story. Earlier this year, cobalt prices fell to inflation-adjusted record lows.

In January, cobalt sulphate—the refined product used in EV batteries—plunged to around US$3,556 per tonne. By May, it had climbed to US$6,394, an 80% surge following the export ban.

Meanwhile, Cobalt Holdings has shelved its plans to list on the London Stock Exchange, which would have been the largest mining IPO there since 2022. The company had hoped to raise US$230 million and purchase discounted cobalt stock from Glencore. But with Glencore recently declaring force majeure on some deliveries, the deal appears to be off the table.

While the DRC tightens supply, Indonesia—another key cobalt-producing country—is ramping up output through its booming nickel sector. Talks are reportedly underway between the two nations to coordinate cobalt supply using export quotas.

Despite recent gains, cobalt prices remain far below their 2022 peak of US$19 000 per tonne. Still, the ongoing policy shifts from the DRC could continue to jolt global markets and reshape the future of battery metals.