The Democratic Republic of Congo has lifted its 10-month ban on cobalt exports, according to Finance Minister Doudou Fwamba. The ban, initially imposed in February for four months, was designed to stabilize the market and stem falling prices due to global oversupply. The suspension aimed to ensure national sovereignty over raw materials, particularly cobalt, which is essential for producing lithium-ion batteries used in smartphones and electric cars.
As the world’s leading cobalt producer, the DRC was responsible for 76% of global cobalt production in 2024, with approximately 220,000 tons, according to the US Geological Survey. The country’s decision to halt exports was largely due to the systematic decline in cobalt prices, resulting in lost fiscal revenue. China’s extensive cobalt mining activity in the DRC, particularly through Chinese mining company CMOC, which operates two of the world’s largest mines, Tenke Fungurume and Kisanfu, also contributed to the decline.
The government’s strategy appears to have been successful, with cobalt prices rising from $22,000 per ton to $54,000 or $55,000. Cobalt is mainly extracted from mines in the southeastern province of Katanga, a region considered vital to Kinshasa’s economy and strategy. The resumption of cobalt exports is significant, given the metal’s importance in the production of lithium-ion batteries and the DRC’s dominance in the global market.
The decision to lift the ban is expected to have a positive impact on the country’s economy, which has been affected by the decline in cobalt prices. The DRC’s efforts to assert national sovereignty over its raw materials and influence price formation may set a precedent for other countries seeking to control their natural resources. With the resumption of cobalt exports, the DRC is likely to regain its position as a major player in the global market, and the country’s economy is expected to benefit from the increased revenue.
