What's Happening?
Cobalt producers in the Democratic Republic of Congo are experiencing delays in obtaining government approval to resume exports under a new quota system introduced on October 16, 2025. This system was expected to restart shipments immediately following
a months-long export suspension. The suspension had disrupted global supply chains, particularly affecting electric vehicle manufacturers in China. Under the new regime, companies must apply for monthly export quotas and prepay royalties based on assigned volumes and cobalt prices. Despite the allocation of quotas, approvals have not yet been granted, causing uncertainty among producers.
Why It's Important?
Congo is a major player in the global cobalt market, accounting for over 70% of the world's output. The delays in export approvals could have significant implications for the global supply chain, particularly for industries reliant on cobalt, such as electric vehicle manufacturing. The new quota system aims to stabilize cobalt prices, which have rebounded significantly since the export freeze. However, the uncertainty surrounding approvals could impact market confidence and investment in the region. Companies like Glencore and CMOC, which are major cobalt producers, are directly affected by these regulatory changes.
What's Next?
Producers are hopeful that export approvals will be granted by the end of October, although further delays are possible. The situation will require close monitoring by stakeholders in the cobalt supply chain, including manufacturers and investors. The Congolese government may face pressure to streamline the approval process to prevent further disruptions. Additionally, the effectiveness of the new quota system in stabilizing prices and ensuring fair market practices will be evaluated in the coming months.
Beyond the Headlines
The introduction of the quota system reflects broader efforts by the Congolese government to exert greater control over its mineral resources and influence global markets. This move could set a precedent for other resource-rich countries seeking to manage their exports strategically. The situation also highlights the challenges of balancing national interests with global supply chain demands in the context of critical minerals.
