Cobalt Clash: China's Strategic Vulnerabilities Exposed

China's control over the critical mineral supply chain, particularly cobalt, faces challenges due to export controls by the Democratic Republic of Congo. The U.S. is increasing competition for Congolese cobalt, highlighting China's dependence on foreign sources as it struggles with supply chain vulnerabilities.

China's dominance in critical mineral supply chains, especially cobalt, is being called into question as vulnerabilities emerge. The International Energy Agency reports that while China was responsible for 78% of global refined cobalt output in 2024, it lacks significant domestic mining capacity, heavily relying on imports of raw materials.

This dependence has been exposed through export controls by the Democratic Republic of Congo, the largest supplier of cobalt intermediate products to China. Congo's suspension of cobalt exports and implementation of a quota system have tightened supply, leading to price surges and increased competition, particularly from the United States.

The U.S. is intensifying efforts to weaken China's hold on Congolese cobalt as part of a larger strategy reshaping the mineral sector. China faces a precarious future as it seeks alternative sources like Indonesia, while also grappling with broader dependencies on foreign suppliers for other critical minerals.

(With inputs from agencies.)