DRC Extends Cobalt Export Ban 3 Months, Impacting EV Industry

The Democratic Republic of Congo (DRC) has extended its ban on cobalt exports for an additional three months, a move that has significant implications for the global electric vehicle (EV) industry. The DRC, which is the world's leading producer of cobalt, initially imposed a four-month export suspension in February 2025 to address an oversupply of the critical component used in lithium-ion batteries. The ban, which was set to expire on June 23, has now been extended until September, keeping approximately 70% of the world’s cobalt production largely unavailable to global markets.

The decision to extend the ban was announced by the Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS). The agency cited the continued high level of stock on the market as the reason for the extension. ARECOMS expects its market intervention to stabilize cobalt prices, which fell to a nine-year low of $10 per pound earlier this year. The industry is currently experiencing a crisis as global cobalt prices remain in decline, and miners are divided over how to navigate the growing stockpile.

The extended ban has sparked disagreement among the industry’s biggest players, including Glencore and CMOC Group, the world’s top two cobalt producers. Glencore, an Anglo-Swiss mining and commodities giant, supports a quota-based system that would limit how much cobalt each mining company can ship abroad once the ban is lifted. This system is seen as a way to better manage supply and pricing. However, CMOC Group, China’s state-backed mining conglomerate, is lobbying for the immediate removal of the export ban. CMOC argues that the continued suspension will distort global markets, undermine long-term supply relationships, and could damage the reputation of Congolese cobalt as a reliable input for EV manufacturers and tech firms.

This disagreement comes at a critical time as major automakers are ramping up EV production to meet their ambitious climate targets. These companies require stable and ethical sources of battery materials. Disruptions in cobalt supply can lead to delays in battery manufacturing, increase costs, and force companies to seek alternative methods that rely less heavily on cobalt. Already, several battery producers have begun transitioning toward nickel-rich or cobalt-free technologies due to ethical concerns tied to artisanal mining in the DRC, as well as price volatility and regulatory unpredictability.

The extended Congolese export ban is expected to tighten global cobalt availability further, potentially driving prices upward in the second half of the year if stockpiles begin to shrink. Some analysts believe the DRC’s move may encourage speculative hoarding or opportunistic deals with buyers willing to pay a premium for early access once exports resume. For now, ARECOMS has said it will issue a final decision to either modify, lift, or further extend the suspension before the new three-month period ends in September. The agency will continue monitoring stock levels and market conditions and will provide further guidance before the current extension expires.