DR Congo Implements Cobalt Export Ban Amid Price Fluctuations

DR Congo to Impose a Ban on Cobalt Exports, Impacting Global Electronics Market

In a move that could potentially drive up the cost of essential electronic devices, the Democratic Republic of Congo (DRC), the world’s largest producer of cobalt, has announced a four-month ban on the export of this crucial mineral. This decision comes as cobalt, a key ingredient in lithium-ion batteries, faces fluctuating prices that have affected its role in the electronics and electric vehicle sectors.

Cobalt, a hard, shiny, grayish-silver metal, is primarily extracted through the mining of nickel and copper. It is processed into cobalt sulfate or cobalt oxide and used in a wide range of industries, from electronics to aviation, cutting tools, and even medical implants. With the rise of electric vehicles, which depend heavily on cobalt for battery production, the demand for this mineral has surged.

As the world's largest supplier, providing over 70% of the global cobalt market, DRC's decision to halt exports is expected to disrupt the industry, causing a ripple effect in the global supply chain. The country’s intention behind the export ban is to address an oversupply in the market, which has led to a significant drop in cobalt prices in recent years.

In April 2022, cobalt prices peaked at $82,000 per metric ton, but by February 2025, this price had plummeted to around $21,000. The DRC’s ban aims to curb this decline and stabilize the market, though the immediate impact will likely be an increase in costs.

Market Disruption Looms for Electronics and EV Manufacturers

"The impact of any interruption in cobalt supply is profound, especially for electronics," said Anita Mensah, a product analyst at Global Trade Insights. "Manufacturers will either have to absorb the increased costs or pass them on to consumers."

The ban’s effect is already being felt, with electronic component suppliers increasing prices. Peter Zhang, a supply manager at a major electronics company, remarked, "We’re already seeing price hikes from suppliers. If the ban extends beyond the initial four months, consumers can expect higher prices or changes in battery quality."

The immediate disruption in cobalt supply has already resulted in price fluctuations, with some traders noticing a rapid rise in prices. David Okoro, a London-based metals trader, said, "We saw cobalt prices spike drastically in just one day. Prices may continue to fluctuate depending on how the market reacts."

While some market analysts, like Joshua Cauthen of Sofala Partners, believe the price surge may only last temporarily, the supply shortage in 2019 caused by the closure of the Mutanda mine by Glencore provides a precedent for similar short-term disruptions. However, increased cobalt supply from countries like Australia and Indonesia may help mitigate the impact.

Who Will Be Affected the Most?

China, with its significant reliance on Congolese cobalt, is expected to feel the brunt of this decision. Meanwhile, the United States, Japan, South Korea, Taiwan, and European nations are already exploring alternative sources and developing materials to reduce their dependence on cobalt.

If the export ban is extended, consumers could witness price hikes for mobile phones, laptops, and other electronic devices, as manufacturers scramble to secure alternative sources of cobalt.

Cauthen also noted that political factors could influence the duration and effectiveness of the ban. The ongoing M23 crisis has prompted DRC to seek new allies, which may lead to more flexibility in the enforcement of the ban through diplomatic channels. Countries like China and Zambia may attempt to use economic or diplomatic pressure to secure exceptions or alternative trade arrangements.

How Will DRC Enforce the Export Ban?

To ensure compliance with the export restrictions, DRC authorities have introduced robust monitoring measures. Government agencies such as the General Directorate of Customs and Excise (DGDA) and the General Directorate of Migrations (DGM) are tasked with overseeing the transportation of cobalt across the country’s key border points.

"The purpose of this action is to manage global market supply, which is facing increased production," stated Patrick Luabeya, President of the Mining Market Regulatory Authority (ARECOMS).

Despite these efforts, the enforcement of the ban may present challenges. Many cobalt mines are located in Lualaba and Haut-Katanga provinces, which are relatively unaffected by the region's conflicts. However, these provinces share borders with Zambia and Angola, making them vulnerable to smuggling, particularly given the remote nature of these areas and the weak border management infrastructure.

In response, DRC is tightening oversight in both the industrial and artisanal mining sectors. New regulations prohibit mixing industrially mined cobalt with that sourced from artisanal miners, ensuring that only cobalt processed through government-controlled channels, such as the Enterprise Générale du Cobalt (EGC), is allowed for export.

Moreover, DRC authorities are committed to improving working conditions in the cobalt mining sector. This includes clear prohibitions against child labor, hazardous work environments, and exploitation of vulnerable workers.

“Cobalt mining has long been associated with human rights violations,” said Elizabeth Nkosi, a labor rights advocate at the African Minerals Rights Forum. "This enforcement pressure could be a positive step, but only if the government remains consistent and transparent in its approach."