The Democratic Republic of Congo (DRC) will begin implementing annual cobalt export quotas for producers starting October 16, marking a major policy shift designed to tighten market control and curb oversupply from the world’s largest cobalt producer.
Under the new system, quotas will be calculated based on production and shipment data from the past three years, replacing the months-long export suspension that disrupted global supply chains and affected electric vehicle manufacturers, particularly in China, the largest consumer of cobalt.
With the DRC supplying over 70% of global cobalt, its regulatory decisions are now central to stabilizing prices for batteries, smartphones, and defense technologies worldwide.
Policy Background and Market Impact
Earlier this year, a temporary export freeze helped drive a sharp rebound in cobalt prices, prompting the government to formalize a quota framework to stabilize the market and increase national revenues.
Cobalt now trades at roughly $19 per pound ($41,890 per metric ton) — nearly double the February nine-year low. Authorities expect cobalt revenues to rise sharply in the last quarter of 2025 and into 2026 as exports resume under the new rules.
Industry Reaction and Implementation
The quota system has drawn mixed reactions from industry players. Large mining companies largely support it as a mechanism to bring transparency and predictability to the sector, while some express concerns that output constraints could disrupt supply chains.
A multi-agency committee, including representatives from the Presidency, Ministry of Mines, and Chamber of Mines, is finalizing the allocation criteria by reviewing historical production and export data to determine quotas for eligible companies.
Regulatory Oversight and Security Context
The new framework excludes artisanal miners and does not impose additional licensing requirements on large-scale producers. Smaller operators, however, will still need to secure export permits and supplementary licenses.
Authorities plan to strengthen oversight at laboratories and loading sites to ensure traceability, prevent smuggling, and enforce compliance across the supply chain.
The rollout comes amid ongoing security challenges in eastern Congo, where clashes between armed groups and government forces have disrupted mining operations. Despite these hurdles, the government remains committed to restoring order, attracting investment, and enhancing transparency in the sector.
The new quota system represents a decisive step in aligning cobalt production with national economic goals, strengthening state control over one of the world’s most strategic resources, and positioning the DRC as a key driver of the global energy transition.
