The Democratic Republic of Congo (DRC) has introduced a comprehensive set of new regulations governing cobalt exports, signaling a decisive move to assert full control over one of the world’s most strategically critical mineral supply chains. The measures include export quotas, advance royalty payments, stricter inspections, and enhanced documentation requirements, reshaping how the country manages its vast cobalt reserves.
Cobalt: The Backbone of the Energy Transition
Cobalt is essential for the energy transition, stabilizing high-performance EV batteries, supporting aerospace applications, and powering an array of defence technologies. Global demand is expected to triple by the mid-2030s, making governance of cobalt reserves a top priority for countries with significant deposits. With the largest cobalt reserves on the planet, the DRC’s regulatory choices reverberate across global supply chains.
Tackling Fragmented Oversight and Revenue Leakage
Historically, Congo’s cobalt sector has suffered from fragmented oversight, weak enforcement, and an informal artisanal mining market. Artisanal miners, middlemen, foreign operators, and state-owned enterprises coexist in a system where official revenues capture only a fraction of actual production. Leakage, under-reporting, and inconsistent taxation have cost the state billions of dollars over the years.
The new rules are designed to tighten control and maximize revenue:
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Advance registration and royalties: Exporters must declare volumes and pay royalties before shipment, reducing post-export manipulation.
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Enhanced inspections: Authorities will verify mineral origin, quality, and declared value.
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Digital registry: A centralised system aims to improve transparency, track flows, and limit fraud.
Driving Sovereignty and Global Influence
The regulatory push comes amid rising pressure on the DRC to capture more value from its minerals while closing governance gaps exposed by audits revealing underreported sales exceeding $16 billion. The reforms also reflect a strategic desire to diversify cobalt customers beyond China, which dominates refining and purchasing.
Industry Response and Implementation Challenges
Mining companies have expressed mixed reactions. Some welcome clearer rules and argue that consistent enforcement could strengthen long-term investment confidence. Others caution that new compliance requirements may slow exports, increase administrative burdens, and create congestion at border points already stressed by copper and cobalt flows.
International analysts note that the DRC is aligning with other resource-rich countries like Chile and Indonesia, which have tightened export rules to boost domestic processing and capture more mineral value. However, successful implementation will require robust governance, digital infrastructure, and consistent enforcement, areas where the DRC has faced historical challenges.
Implications for Global Supply Chains
The message is clear: Congo is asserting sovereignty over cobalt, and global EV manufacturers, battery producers, and industrial users must adapt. As the world accelerates toward electrification and clean-energy technologies, the DRC’s regulatory decisions will increasingly define market access, pricing, and long-term supply security for one of the most critical minerals of the 21st century.
