Cobalt Prices Fall to a 21-Year Low! Congo Urgently Halts Cobalt Exports for Four Months to Save the Market

According to information obtained by Zhitong Finance APP, the Democratic Republic of Congo (DRC) announced a four-month suspension of cobalt exports to control the supply surplus of battery metals in the international market. The DRC's cobalt production accounts for approximately three-quarters of the global supply for EV batteries.

In recent years, the expansion of production at two large mines in the country by CMOC has led to cobalt supply exceeding demand, causing prices to plummet and the DRC's cobalt production to surge.

Patrick Luabeya, Chairman of the country's Strategic Mineral Market Regulatory Authority (ARECOMS), stated: "Exports must align with global demand."

According to Luabeya, these measures took effect on February 22. A day earlier, the Prime Minister and the Minister of Mines signed a decree allowing the regulatory authority to take temporary measures, including banning exports, "to prevent situations that could destabilize the market."

The DRC government, also the world's second-largest copper producer, has been "closely examining market dynamics for a year," Luabeya said.

He stated that the situation requires "immediate action" as years of illegal mining and uncontrolled exports by industrial and semi-industrial producers have led to a supply surplus, posing "a serious threat to the country and its domestic and international investors."

Cobalt is a byproduct of copper in the DRC. Luabeya noted that while the export ban on cobalt is "unilateral and without exception" for all producers, it does not restrict production, and copper exports should remain unaffected. "Since copper and cobalt are sold separately, copper exports can continue."

The two largest cobalt miners after CMOC are Glencore and Eurasian Resources Group.

Luabeya stated that the decision will be reviewed in three months. Meanwhile, the agency is preparing additional measures to balance the cobalt market, encourage more processing of strategic minerals within the DRC, and achieve "transparent and fair pricing mechanisms."