DR Congo Plans October Cobalt Export Quotas After Ban

The Democratic Republic of Congo (DRC), the world's largest cobalt producer, plans to end its cobalt export ban on October 15, replacing it with a quota system to manage supply and stabilize prices. Under the new policy, miners will be allowed to export approximately 18,000 tons for the remainder of 2025 and annual caps of 96,600 tons for 2026 and 2027, significantly lower than the 220,000 tons produced in 2024. The export ban, imposed in February due to a steep price slump to near $10 per pound, helped cobalt prices recover by over 60%, though oversupply and weak electric vehicle demand remain challenges. The quota system aims to reduce global inventories to about one month of demand, with 10% of future volumes reserved for strategic national projects and flexibility for adjustments based on market conditions. However, implementing the quota system has faced delays and political complexities, with major producers like Glencore and CMOC holding differing views on lifting or adjusting restrictions. The DRC’s largely unregulated artisanal mining sector and ongoing conflict in eastern Congo further complicate compliance and traceability efforts.