Cobalt prices surged 32% in one day ($14 → $18.5 per pound) after Congo announced a four-month export ban.
The DRC accounts for 74% of global cobalt production, making supply disruptions highly impactful.
South Korea imported 13,426 tons of cobalt in 2024, with the DRC (5,995 tons) and China (3,759 tons) as major suppliers.
Opinion
If the export ban extends, it could trigger further supply chain disruptions in the battery and EV industries, increasing raw material price volatility.
Core Sell Point
The surge in cobalt prices could lead to higher production costs for battery manufacturers, affecting profit margins. Investors should closely monitor related stocks for potential market reactions.
Cobalt, a key raw material for electric vehicle (EV) batteries, surged 32% in a single day. On March 11, cobalt (99.8% alloy grade) on the Rotterdam exchange rose to $18.5 per pound, marking a 32.14% increase from the previous trading session and the highest level in over 17 months.
The price spike followed the Democratic Republic of Congo's (DRC) decision to impose a four-month cobalt export ban, aiming to counter price declines caused by oversupply. As the world’s largest cobalt producer, accounting for 74% of global output (230,000 tons), Congo’s decision is expected to disrupt the global supply chain significantly.
Following the announcement, cobalt prices surged nearly 12% on China’s Wuxi Stainless Steel Exchange, temporarily halting trading. Given cobalt’s critical role in EV batteries and consumer electronics, the export ban could have a widespread impact across industries. South Korea, which imported 13,426 tons of cobalt in 2024, sources a significant portion from the DRC (5,995 tons) and China (3,759 tons).
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