21.06.2025 22:47

The Democratic Republic of Congo (DRC), the world's leading cobalt producer, has extended its ban on cobalt exports for another three months, prolonging a significant disruption to the global electric vehicle (EV) industry. This decision, announced by the Authority for the Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS) on Saturday, June 21st, 2025, keeps approximately 70% of the world's cobalt supply off the international market until September.

Initially implemented in February 2025 for four months, the export suspension aimed to address a substantial cobalt oversupply, a critical component in lithium-ion batteries powering EVs and numerous other technological devices. The extension, however, signifies a continued struggle to manage this surplus and stabilize plummeting prices, which recently hit a nine-year low of $10 per pound. ARECOMS justified the extension by citing persistently high cobalt stockpiles.

This ongoing market intervention is causing considerable friction within the cobalt mining industry. Major players, such as Glencore and CMOC Group, find themselves at odds regarding the best strategy for navigating the current crisis. Their disagreement underscores the complexity of managing this vital resource, impacting not only the DRC's economy but also the global EV sector's supply chain.

The DRC's actions highlight the increasing prevalence of trade-related tensions and their ripple effects across various industries. The prolonged ban creates significant uncertainty for EV manufacturers reliant on cobalt for their battery production, prompting concerns about potential production delays and price fluctuations. The long-term implications of this policy on the global market remain to be seen, particularly its effectiveness in achieving the desired price stabilization. This development is yet another example of how geopolitical factors significantly influence the availability and cost of crucial materials for emerging technologies.