Congo seeks Indonesia help to stabilise cobalt prices

The Democratic Republic of Congo (DRC), the world’s largest cobalt producer, is seeking to partner with Indonesia, the second-largest supplier, to better regulate global supply and stabilise prices of the battery metal. This according to recommendations made by a committee headed by Prime Minister Judith Tuluka.

While Indonesia has not formally agreed to the plan, preliminary discussions took place during an earlier visit by a Congolese delegation to Jakarta, before the export restrictions were implemented. The DRC is considering introducing quotas on cobalt exports after enforcing a four-month ban that started in February.

The price of Cobalt, which is used in batteries for electric vehicles (EVs) and smartphones, has dropped to record-low amid weak demand and robust supply. In 2024, the production of Cobalt out of the DRC almost reached 244,000 tonnes - a 38.9% increase from the year before, driven mainly by the ramp-up of operations at the Kisanfu and Tenke Fungurume mines.

DRC halted the export of Cobalt in February in a bid to curb a global supply glut and stabilise the market. That has pushed up prices for cobalt hydroxide – its main export product – by as much as 84%. But Kinshasa appears to recognise that such measures offer only temporary relief. It is now weighing longer-term policies to capture more value from domestic extraction and processing, and to prevent a flood of stockpiled material once the ban is lifted. That includes seeking Indonesia’s cooperation to better control supply and prices.

While the DRC continues to dominate the market – accounting for more than three-quarters of global output – Indonesia’s share has grown to 11%. In both countries, cobalt is mined as a by-product: alongside copper in the DRC and with nickel in Indonesia. This structure creates a challenge. Nearly all cobalt on the global market – about 98% – is extracted as a by-product of mining other metals, leaving it without a price floor or a natural mechanism to balance supply. Output continues to rise due to increased copper mining in the DRC and growing nickel production in Indonesia.

But oversupply is only part of the problem. Demand growth has fallen short of expectations, especially from the EV sector. While EV sales are increasing, cobalt use in batteries is not growing at the same pace as manufacturers switch to cobalt-free technology. This shift is partly driven by price volatility.

Still, cobalt's prospects are not entirely dimmed. Beyond EVs, the metal remains critical for defence applications, particularly in the aerospace sector, where it is used in superalloys capable of withstanding high temperatures. The global price of Cobalt has increased 38.31% since the beginning of 2025 and now stands above US$31000 per tonne (as of Mar 2025).

 

References

'Congo's export ban not enough to clear the cobalt glut', Reuters, 11 March 2025

'Cobalt prices spike as Congo export halt rattles supply chain', BNN Bloomberg, 12 March 2025

'Congo plans cobalt export quotas, partnership with Indonesia to tackle glut', Channel News Asia, 19 March 2025

'Congo considers asking Indonesia to help rein in cobalt supply', Engineering News, 19 March 2025

'What will be the impact of the DRC cobalt export ban?', Project Blue, Accessed on 21 March 2025