The Democratic Republic of Congo (DRC), the world’s leading cobalt producer, is seeking guidance from international industry organisations on strategies to increase the price of the battery metal. Among the measures under consideration is the implementation of potential export quotas, representing the latest effort to exert greater control over critical minerals.
Cobalt prices have experienced a significant decline, dropping by two-thirds since mid-2022, primarily due to a surplus in global supply outpacing demand. In response, the DRC is exploring avenues to stabilise prices and ensure fair value for its cobalt exports.
By consulting with international industry bodies, the DRC aims to formulate effective policies that balance market dynamics while maximising the benefits of its cobalt resources. Export quotas represent one potential tool to regulate the flow of cobalt and exert influence on pricing mechanisms in the global market.
As cobalt continues to play a pivotal role in the production of batteries for electric vehicles and other high-tech applications, the DRC’s efforts to enhance control over its cobalt sector could have significant implications for the future of the global cobalt market.