finance
DRC Cobalt Miners Cut Output and Shift to Copper as Prices Reach Nine-Year Low
Producers in the Democratic Republic of Congo are reducing cobalt production amid oversupply and shifting investments to copper, where demand is surging. The government has replaced a 2025 export ban with strict quotas of 96,600 tonnes annually for 2026 and 2027. Glencore reported a 39% drop in DRC cobalt output in Q1 2026 while boosting copper by 19%.
May 5, 7:00 PM·2m read3 sources
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The Democratic Republic of Congo's cobalt producers are curtailing output after prices plunged to a nine-year low of $22,000 per metric ton in 2025, driven by heavy oversupply. Miners are redirecting capital toward copper, where demand is accelerating from AI data centers, electrification efforts, and electric vehicles.
At the same time, copper supply is constricting due to falling ore grades and mine closures, drawing investment to the stronger market.
The DRC government has enacted strict export quotas to manage the sector, replacing its 2025 cobalt export ban with annual limits of 96,600 tonnes for both 2026 and 2027. Unused allocations from the first quarter of 2026 must be shipped by June 30, or they will be forfeited to the national strategic reserve.
This framework aims to stabilize prices, increase revenues, and encourage local processing and industrial growth.
Cobalt, essential for rechargeable lithium-ion batteries in electric vehicles and electronics, meets over half of global demand through its high energy density and thermal stability. The mineral also supports high-temperature superalloys for jet engines, magnetic materials, and blue pigments.
Nearly all global cobalt—99%—emerges as a byproduct of copper or nickel mining operations, with just 1% from dedicated cobalt mines.
The DRC dominates the market, supplying 70% of the world's cobalt. Prices had soared above $77,000 per metric ton in the post-Covid period, fueled by supply chain disruptions and electric vehicle demand surges. That rally faded starting in 2023, culminating in the 2025 bottom amid persistent oversupply.
Major player Glencore has embraced a 'copper-first' strategy in the DRC, prioritizing copper to optimize efficiency and navigate quota restrictions. The company's cobalt production there dropped 39% year-over-year in the first quarter of 2026, reaching 5,800 tons.
