What's Happening?
The Democratic Republic of Congo (DRC) has introduced new regulations for cobalt exports, implementing a quota system and requiring a 10% royalty pre-payment. These changes aim to increase state revenues
and enhance regulatory oversight. Exporters must now secure a compliance certificate and a 'liberatory receipt' before customs clearance. The DRC, which supplies over 70% of the world's cobalt, ended a months-long export ban in October and set export quotas for the fourth quarter of 2025 and for 2026. Major producers like China's CMOC and Glencore have received the largest allocations. The government warns that non-compliance could lead to severe penalties, including license revocation.
Why It's Important?
Cobalt is a critical component in electric vehicle (EV) batteries, making the DRC's regulatory changes significant for the global EV market. The new rules could lead to increased costs and supply chain disruptions, affecting manufacturers and consumers worldwide. The DRC's move to tighten control over cobalt exports reflects its strategy to maximize revenue from its natural resources. However, the complexity and unpredictability of the new regulations may deter investment and lead to market volatility. Companies involved in cobalt production and export will need to navigate these changes carefully to avoid penalties and ensure continued operations.
What's Next?
As the DRC enforces these new regulations, companies will likely seek clarification and work to comply with the updated requirements. The global market will closely watch how these changes impact cobalt supply and prices. The DRC's approach may influence other resource-rich countries to adopt similar strategies, potentially reshaping the global mineral export landscape. Stakeholders in the EV industry will need to adapt to these regulatory shifts to maintain supply chain stability.
