10-03-2025
How chemical element wey DR Congo wan stop im exportation fit raise prices of phones and electric vehicles
Di production of consumer electronics such as phones, laptops, and even electric vehicles fit soon dey more expensive.
Di Democratic Republic of Congo (DRC), wey be di world biggest producer of cobalt – one important component for making some electronic goods – don tok say dem go put four-month ban for di exportation of di commodity.
Cobalt na hard, shiny, silver-grey metal wey dem dey mainly get as by-product of nickel and copper mining. E dey come from ores like cobaltite and heterogenite, and dem dey refine am into cobalt sulfate or cobalt oxide for industrial use. E dey veri important for di production of rechargeable lithium-ion batteries wey dem dey use for smartphones, laptops, and electric vehicles.
Also, cobalt na important element for superalloys wey dem dey use for jet engine, cutting tool, and medical implant sake of say e get high resistance to heat and corrosion. Dem dey find plenty cobalt for Democratic Republic of Congo, wey control global supply wit over 70% of production.
Di kontri tok say di reason wey dem wan stop di export na to handle di oversupply for market, wey don make cobalt price dey drop for di past years. For April 2022, cobalt price reach record high of $82,000 per metric ton, but by February 2025, e bin fall to $21,000 per metric ton. Di move wey DRC make fit push di price go up again.
"Any problem for cobalt supply go affect many industries, especially consumer electronics," Anita Mensah, wey be commodities analyst for Global Trade Insights, tell BBC. "Manufacturers go need either bear di cost or pass am give consumers."
Wetin be di immediate impact?
Di announcement don already cause kasala for industries wey strongly depend on cobalt, especially consumer electronics and electric vehicle (EV) manufacturing.
Cobalt na key material for lithium-ion batteries wey dey power smartphones, laptops, EVs, and renewable energy storage systems.
Since DRC dey supply more dan 70% of di global market, dis kind wahala go reach consumers, as e fit make electronic devices and vehicles cost more.
Peter Zhang, wey be supply chain manager for one big electronics company, tok say, "We don already see suppliers dey adjust price. If di export ban pass three months, consumers suppose expect price increase or change for battery performance."
Di sudden pause on export don already trigger a spike in cobalt futures.
"We don see cobalt futures price hit upper limit for overnight trading. Prices fit remain unstable," na wetin David Okoro, wey be metals trader for London, tok.
But Joshua Cauthen, wey be Associate Partner for Sofala Partners, tok say di price increase fit just be for short term, as e point go past supply wahala like di 2019 shutdown for di Mutanda mine by Glencore.
"Di price jump fit no too high sake of say market still get oversupply," e tok. "Some pipo for di market don already prepare for dis kain wahala by keeping stock or looking for cobalt from places like Australia or Indonesia."
Who go feel di impact pass?
China go feel di impact pass sake of say dem dey depend well-well on Congolese cobalt.
Di United States, Japan, South Korea, Taiwan, and European kontris don dey try diversify dia supply chains and find alternative materials to reduce how dem take dey depend on cobalt.
If di ban continue, consumers fit see higher prices for high-end smartphones and laptops, longer wait time for some EV models, and more shift to alternative battery chemistries.
Cauthen still tok say geopolitical factors fit affect how long di ban go last and how effective e go be.
"Di M23 crisis don make Kinshasa need allies and partners more, and dat fit make di goment more open to negotiation," e tok. E suggest say kontris like China or Zambia fit use economic or diplomatic pressure to get exemptions or find alternative trade routes.
How DRC plan to enforce di ban
Di DRC authorities don put strong measures to make sure say mining companies obey di suspension. Goment agencies like di Direction Générale des Douanes et Accises (DGDA) and di Direction Générale des Migrations (DGM) don get di work to monitor and control exports for key checkpoints.
"Dis measure na to regulate supply for international market wey don get too much production," na wetin Patrick Luabeya, wey be President of di Authority for di Regulation and Control of Strategic Mineral Substances' Markets (ARECOMS), tok.
However, to enforce di ban fit no easy. "Most of di big cobalt mines dey Lualaba and Haut-Katanga, and dem no get large-scale conflict," Cauthen tok.
"But di borders wey dis provinces get wit Zambia and Angola long pass 1,000 km, and plenty of di area dey isolated and no too get pipo," im add.
E still tok say Zambia get beta transportation infrastructure and weak border enforcement, wey fit make am easy for pipo wey wan smuggle cobalt pass dat side.
To make sure say pipo obey di law, goment dey tighten how dem dey watch cobalt mining, both for big companies and small artisanal miners. New regulations don stop di mixing of uncertified artisanal cobalt wit industrially mined ones, and dem don tok say small-scale miners gatz sell only through di state-controlled Enterprise Générale du Cobalt (EGC).
Apart from regulations, di goment dey also crack down on labour conditions. Authorities don ban child labour, unsafe working environments, and di presence of vulnerable pipo for mining sites.
"Cobalt mining don get human rights issues for long," Elizabeth Nkosi, wey be activist for di Africa Mining Justice Initiative, tok. "Dis enforcement fit be turning point, but only if di goment stay consistent and transparent."
