CMOC Urges DRC to Lift Cobalt Export Ban, Warning of Shift to LFP Batteries

[CMOC Urges DRC to Lift Cobalt Export Ban, Warns of Accelerated Shift to LFP Batteries]

According to Reuters, CMOC Group, the world’s largest cobalt producer, last week called on the Democratic Republic of Congo (DRC) to lift its cobalt export ban before it expires in June. The call was made during a closed-door industry meeting in Singapore. Kenny Ives, Vice President of CMOC, stated that the export restrictions imposed by the DRC in February—aimed at curbing oversupply amid cobalt prices plunging to nine-year lows (around $10/lb or $22,000/tonne)—have kept the market under pressure. He warned that continued restrictions could accelerate automakers’ transition to cobalt-free lithium iron phosphate (LFP) batteries, further weakening cobalt demand. Ives also highlighted that China’s cobalt inventories are running low, adding urgency to resuming exports. According to sources, some Congolese officials viewed Ives' comments, particularly regarding LFP batteries, as a veiled threat. There are concerns that China may be leveraging low prices to build a strategic stockpile. CMOC expects cobalt output from its two Congo-based mines—Tenke Fungurume and Kisanfu—to reach 100,000 to 120,000 tonnes in 2024, nearly double last year’s production, underscoring the company's growing influence in the global cobalt market. Meanwhile, Glencore expressed support for maintaining export controls and suggested a quota system to help manage oversupply and price volatility.