DRC Imposes Cobalt Export Quotas as Miners Cut Cobalt Output and Raise Copper Production

The Democratic Republic of Congo has set strict cobalt export quotas, replacing its 2025 cobalt export ban with annual limits of 96,600 tonnes for 2026 and 2027. Producers in the country cut back on cobalt production after prices fell sharply due to heavy oversupply, moving capital into copper production instead.

The government requires unused Q1 2026 cobalt allocations to be shipped by June 30, 2026, or forfeited to the national strategic reserve.

Glencore adopted a copper-first strategy in the Democratic Republic of Congo, prioritizing copper production over cobalt. The company's cobalt output in the country fell 39% year-over-year in Q1 2026 to 5,800 tons, while its copper production increased 19% in the same period.

'Our DRC assets are now prioritising copper production as existing finished cobalt inventories are sufficient to fully deliver into near-term quota levels,' Glencore stated.

Copper demand is rising due to AI data centers, electrification, and electric vehicles, even as supply tightens from declining ore grades and mine closures. The Democratic Republic of Congo accounts for 70% of global cobalt supply. Cobalt prices reached more than $77,000 per metric ton in the post-Covid era but bottomed at $22,000 per metric ton in 2025.

Cobalt is used in rechargeable lithium-ion batteries for electric vehicles and electronics, accounting for over half of global cobalt demand. About 99% of global cobalt production is sourced from copper or nickel mining operations, with only 1% from primary cobalt mines. This byproduct relationship has enabled miners to adjust output priorities amid market shifts.

In a separate market development, a New Mountain Capital private credit fund sold almost half-a-billion dollars of assets at a discount earlier in 2026. The fund used some of the cash from the asset sale to purchase beaten-down loans. The strategy is already paying off, according to reports on the fund's actions.