On Friday (March 21), DRC government spokesperson Patrick Muyaya stated that the country might extend the export ban introduced last month.
Last month, the DRC announced a four-month suspension of cobalt exports to address the global supply surplus of cobalt. Muyaya noted that since the decision to suspend exports, cobalt prices have risen by more than 50%, making it necessary to maintain the export ban.
Muyaya, citing President Felix Tshisekedi, said that the DRC will conduct an assessment when the ban expires to decide whether to extend the ban or take new measures to maintain market stability.
Earlier this week, DRC Prime Minister Judith Tuluka Suminwa announced that the country plans to implement export quotas for cobalt in two phases, one focusing on exports and the other on local mineral processing.
Suminwa also mentioned that the country plans to cooperate with another major cobalt producer, Indonesia, to better manage supply and prices in the global market. The DRC is one of the richest countries in cobalt resources, accounting for over 78% of global cobalt supply, while Indonesia accounts for 10%.
Cobalt is a key strategic metal widely used in EV batteries, aerospace, electronics, and renewable energy technologies. Due to weak EV demand, cobalt prices had fallen to historic lows before the DRC's export ban.
Media reports wrote that a market participant said, "I never expected the DRC's ban to be so severe. I don't think the government will allow exports to resume after four months. Perhaps they will introduce another policy, such as export quotas."
However, a trader believed that the export ban was more like an "own goal." He explained that while cobalt prices did rise, this has pushed original equipment manufacturers (OEMs) further to develop their labs to remove cobalt from batteries.
A European OEM stated, "Overall, a four-month ban is short, but such interventions reduce the market's demand for cobalt and decrease the entire battery raw material industry's reliance on the region."
