Cobalt Clash: Global Supply Chains Face Turbulence

China's cobalt supply chain dominance is under threat due to export controls from the Democratic Republic of Congo. The U.S. is vying to loosen China's grip, diversifying suppliers and investments. Cobalt prices have surged, reflecting constrained supply as new logistic routes challenge Beijing's extensive control.

China, a dominant player in cobalt supply chains, is facing significant challenges due to the Democratic Republic of Congo's export restrictions. The International Energy Agency reported China's control over 78% of refined cobalt output in 2024, but this control is threatened by its dependency on imported raw materials.

In recent developments, Congo imposed export quotas limiting cobalt exports, causing significant disruption to China's supply. The Democratic Republic of Congo remains the primary source for Chinese cobalt processors, but export slowdowns have sparked a price surge and increased demand competition.

As the United States seeks to gain influence in Congo's mineral sector, new economic corridors and strategic investments are emerging to counterbalance China's previous control. This shift comes amidst rising global demand for cobalt, emphasizing the vulnerabilities in China's mineral strategy.

(With inputs from agencies.)