The Democratic Republic of Congo (Congo) plans to support the market by restricting exports as cobalt prices continue to be low, including the introduction of an export quota mechanism, media reported, citing sources.
As one of the key metals to achieve the energy transition, cobalt is widely used to make batteries for electric vehicles.
In addition, cobalt is needed to manufacture missiles, aerospace components, radars and guidance systems.
Congo (Dum of Congo) is the world's largest cobalt producer, supplying 75% of the world's cobalt.
Cobalt prices have plunged by two-thirds since mid-2022, with global supply more than demand.
At a ministerial meeting in February, the Democratic Republic of Congo (Congo) government discussed how to deal with the collapse in cobalt prices.
According to the minutes, President of the Democratic Republic of Congo), asked then-Prime Minister Lukde to consider the need to introduce export quotas or take any other measures to boost cobalt prices.
Zesekdi also asked a regulator to help with possible plans.
The agency is currently consulting overseas industries and research institutions on possible policies, and will submit a proposal to a new government formed after its re-election, according to people familiar with the matter.
Officials involved in the mining industry are divided over whether to impose export restrictions.
Some find this necessary to deal with oversupply, but others worry that it could make cobalt less attractive as a battery metal.
Cobalt-free electric car batteries are becoming increasingly popular.
Still, professional trading company Darton Commodities forecast in February that the electric vehicle industry is expected to account for 62 percent of cobalt demand after 2030, up from a third in 2023.
