The Democratic Republic of Congo (DRC) plans to shore up the market by restricting exports as cobalt prices remain low, and the country is seeking advice from international industry organisations on the matter, with possible measures including the introduction of an export quota mechanism, the media reported, citing sources. As one of the key metals for the energy transition, cobalt is widely used in the manufacture of batteries for electric vehicles. In addition, cobalt is required for aerospace components, radar and guidance systems, among others. The DRC is the world's largest producer of cobalt, supplying 75 per cent of the world's cobalt. Since mid-2022, cobalt prices have plummeted by two-thirds as global supply exceeds demand. At a ministerial meeting in February, the DRC government discussed how to respond to the cobalt price crash. Minutes of the meeting show that DRC President Felix Tshisekedi asked then-Prime Minister Lukonde to consider the need to introduce export quotas or take any other measures to boost cobalt prices. Tshisekedi also asked a regulatory body to help develop a possible plan. The body is currently consulting overseas industry and research organisations on possible policies and will submit a proposal in the future to the new government that Tshisekedi will form after his re-election, people familiar with the matter said. Officials involved in the mining sector are divided over whether to impose export restrictions. Some see it as a necessary measure to deal with oversupply, but others worry it could make cobalt less attractive as a battery metal.
