As advancements in cobalt-free electric vehicle battery technology progress, Congolese officials are conflicted over the idea of implementing export restrictions on cobalt. The Democratic Republic of Congo (DRC), which is responsible for about 70% of the world’s cobalt supply, is considering export quotas to increase cobalt prices. This news was reported by Bloomberg on Thursday, April 11, 2024, based on information from sources close to the discussions.
In a ministerial council meeting held in February, President Félix Tshisekedi instructed then-Prime Minister Sama Lukonde to explore the possibility of export quotas or other measures to ensure a fair market price for cobalt. A regulatory body was tasked to assist in developing potential strategies, Bloomberg’s sources noted.
However, there is a divide among Congolese officials in the mining sector over the advisability of such export restrictions. While some see it as an essential move to address cobalt oversupply, others worry that it could diminish the metal’s appeal in the battery industry, especially as cobalt-free alternatives gain market traction.
Cobalt prices have notably declined by approximately two-thirds since mid-2022, a drop attributed mainly to global production exceeding demand.
