The Democratic Republic of the Congo said it will stop exporting cobalt for four months amid an oversupply in the global market.
Since the beginning of the year, cobalt oversupply sent prices down by approximately 11.32%.
DRC is the world’s largest cobalt producer with some two thirds of global reserves. Cobalt is a rare metal key to electric battery manufacturing.
DRC’s Authority for the Regulation and Control of Strategic Mineral Substances’ Markets, or ARECOMS, said the halt “is intended to regulate supply on the international market, which is faced with a production glut.”
The agency said the ban is for all cobalt produced in the country, including by small scale or artisanal miners.
The rise of lithium iron phosphate (LFP) batteries, particularly in China, has also reduced the demand for cobalt.
