DRC suspends cobalt exports to boost prices

The Democratic Republic of Congo (DRC), which holds around 70% of the world's cobalt reserves, took a radical step at the end of February 2025 by announcing the suspension of all exports of this strategic mineral for four months. The decision is designed to create a scarcity on the international market, in the hope of boosting prices that are currently at rock bottom, weighed down by a global surplus.

Cobalt, essential to the manufacture of batteries for electric vehicles, is at the heart of the global energy transition. However, an oversupply of cobalt has caused its value to plummet, undermining the revenues of the DRC, a country whose economy is largely dependent on this resource. By suspending its exports, Kinshasa is seeking to regain control of this strategic market and strengthen its economic sovereignty.

This initiative comes against a backdrop of steadily falling world prices, fuelled by surplus production and demand that, although growing, is not yet fully absorbing available stocks. By limiting supplies for four months, the DRC hopes to reverse the trend and encourage buyers - notably battery manufacturers in Asia, Europe and North America - to revalue Congolese cobalt.

However, this strategy is not without risks. While it may temporarily boost prices, it could also encourage other producers, such as Australia or Canada, to fill the gap, or push manufacturers to speed up their research into alternatives to cobalt. In addition, the suspension could strain relations with trading partners, particularly China, the main importer of Congolese ore.

Beyond the price issue, this decision reflects a strong political will. The DRC, often criticised for not taking full advantage of its mineral wealth, is seeking to assert its authority over a key resource of the green economy. "We need to ensure that cobalt benefits the Congolese first and provides a stable income for the country", said a senior official in the Ministry of Mines, speaking on condition of anonymity.

The suspension also comes at a time when the government is renegotiating several mining contracts with foreign companies, with the aim of increasing local economic spin-offs. By freezing exports, Kinshasa is sending a clear signal that the DRC intends to play a greater role in the global cobalt value chain.

The next few months will be crucial in assessing the effectiveness of this measure. If prices rise significantly, the DRC could consolidate its dominant position and secure the financial resources crucial to its development. On the other hand, a lukewarm response from the market or an accelerated diversification of supplies by manufacturers could limit the impact of this suspension. In such a strategic sector, Kinshasa's gamble is a bold one, but its success will depend on the complex dynamics of a rapidly changing global market.