The Democratic Republic of Congo has indicated that it may implement stringent restrictions on cobalt exports once its current four-month ban concludes.
The nation is responsible for nearly 75% of the world’s cobalt production, but it has enforced an export suspension since February to tackle a global surplus that has led to a notable decline in prices.
This metal is essential for manufacturing lithium-ion batteries used in electric vehicles and smartphones.
Kinshasa aimed for the export ban to stabilize the market and safeguard the interests of local producers and investors.
However, on Wednesday, the head of the government agency overseeing strategic minerals stated that while the stockpiles that had driven prices down have been considerably diminished, they are not yet fully depleted.
Patrick Luabeya mentioned that the agency’s forthcoming decision will likely necessitate strict export limitations, either in whole or in part, until a balance between cobalt supply and demand is achieved.
