DRC Miners Cut Cobalt Output and Shift to Copper as Prices Hit Nine-Year Low

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.

Glencore is drawing on existing finished cobalt inventories to fulfill near-term quota requirements, leaving surplus material in the ground or processing stages to sidestep shipping costs and regulatory barriers.

In parallel, Glencore's copper output in the DRC rose 19% in Q1 2026. "Our DRC assets are now prioritising copper production as existing finished cobalt inventories are sufficient to fully deliver into near-term quota levels," the company stated. This pivot allows Glencore to capitalize on copper's tightening supply while managing cobalt's downturn.

Other miners, including CMOC, are adapting under the new rules, with strategies varying on cobalt cuts versus copper expansion. The shift underscores the DRC's role in global battery metals, as producers balance oversupply in one critical mineral against opportunities in another. 54 billion loss for Q1 2026, attributed to bitcoin's declining price.

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