Glencore warns of unsold cobalt in 2025 due to DRC export ban, risking tighter global supply and rising battery production costs.
Glencore Faces Pressure Over Cobalt Stockpiles
Glencore, a major player in global mining, has cautioned that a prolonged cobalt export ban by the Democratic Republic of Congo (DRC) could result in substantial volumes of the battery metal remaining unsold through the end of 2025. The Swiss-based firm has already begun stockpiling cobalt domestically, awaiting a policy shift or an easing of the restrictions.
DRC Moves to Stabilize Cobalt Market
The DRC government implemented the ban in a bid to stabilize falling global cobalt prices, which had been under pressure due to oversupply and weakening demand from electric vehicle (EV) manufacturers and battery makers. The move, while aimed at long-term price support, has introduced fresh uncertainty for both producers and buyers worldwide.
“We continue to manage our inventories within DRC boundaries,” Glencore said in a recent filing, “but if the restrictions persist, a meaningful portion of our production may not reach global markets this year.”
Global Supply Chain Faces Ripple Effects
Glencore’s warning comes as a wake-up call for the EV supply chain, where cobalt is a critical input in lithium-ion battery manufacturing. The company—one of the world’s top cobalt exporters—risks seeing its inventories build up while demand fluctuates.
According to analysts, the extended ban may tighten global cobalt supply, potentially boosting prices in the second half of 2025 if demand rebounds, particularly from China, the world’s largest EV market.
Export Ban Could Hurt Congo’s Revenue
While the ban seeks to achieve long-term price resilience, it may also pose short-term fiscal challenges for the Congolese economy. Cobalt accounts for over 70% of DRC’s mineral exports, contributing significantly to national revenues. Critics argue that prolonged curbs on exports could strain the country’s budget and deter investment in its mining sector.
Next Steps and Market Outlook
So far, there is no official timeline for lifting the export ban. Glencore has called for urgent engagement with policymakers, emphasizing the need for a balance between market stability and supply flexibility.
With a tightening global market and continued uncertainty in the DRC, stakeholders across the cobalt value chain—from miners to automakers—will be watching closely in the coming months.