The Democratic Republic of Congo, the world’s leading cobalt producer, has temporarily banned cobalt exports starting February 22 for a minimum of four months. According to ARECOMS (Authority for the Regulation and Control of Strategic Mineral Substances Markets), the decision stems from officials’ concerns about market oversupply.
The DRC is the leading producer of cobalt, accounting for about 77% of global production, estimated at 300,000 tons by Fastmarkets. A surplus of 27,000 tons in the refined market has resulted in persistent oversupply. This imbalance has caused standard-grade cobalt metal prices to plummet to their lowest levels in eight years.
The suspension affects all cobalt mining activities, encompassing industrial, semi-industrial, small-scale, and artisanal operations. ARECOMS announced that this measure would be reviewed within three months, allowing authorities to modify or lift the suspension based on market conditions at that time.
“This measure is intended to regulate supply on the international market, which is faced with a production glut,” said ARECOMS President Patrick Luabeya. The decree, co-signed by Mines Minister Kizito Pakabomba, enforces the ban on all cobalt production in the country.
The cobalt market is projected to remain oversupplied in 2025, though less severely than currently, with additional Chinese cobalt expected to enter the market in late 2025. In the first nine months of 2024, CMOC’s Congolese operations yielded 84,722 metric tons of cobalt, surpassing their annual target of 60,000-70,000 metric tons and showing a 127.4% increase from the previous year.
However, with global production exceeding demand, cobalt prices have declined substantially. Commodity Insights predicts European cobalt metal will average $10.98/lb in 2025, dropping from $13.19/lb in 2024 and $16.36/lb in 2023, demonstrating continued price pressure from the market surplus.
The DRC’s export suspension is crucial, as cobalt is essential for EV and smartphone batteries. Growing demand for these technologies has created market volatility, prompting the ministry to introduce measures to stabilize prices and supply. The restricted cobalt flow to global purchasers could trigger price hikes due to reduced supply if demand remains steady. Industry experts caution that manufacturers relying on regular cobalt deliveries may face potential supply chain disruptions.
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