Latest news with #SMMRA

See - Sada Elbalad

Congo Extends Export Ban on Cobalt

Taarek Refaat The Democratic Republic of Congo (DRC), the world's leading cobalt producer, has extended its ban on cobalt exports for an additional three months, raising alarms within the global electric vehicle (EV) industry. The move, aimed at controlling supply levels and stabilizing cobalt prices, has significant implications for both the mineral market and the growing EV sector. The Context of the Ban Cobalt, a critical component in the production of lithium-ion batteries that power electric vehicles, has been at the center of a global supply-demand battle. With the rapid acceleration of the EV market and an increasing push for greener technologies, the demand for cobalt has skyrocketed in recent years. However, overproduction and market fluctuations have led to a steep drop in cobalt prices, making the DRC's latest decision a pivotal moment in the global minerals market. The Congolese government first imposed the cobalt export ban in February 2023, initially set for a four-month period. As that deadline approaches, authorities have now decided to extend the ban for another three months, citing concerns about a surplus of the mineral. The Strategic Mineral Markets Regulatory Authority (SMMRA), the body responsible for overseeing the country's mineral exports, explained that the extension was necessary to address the "continuing high levels of inventory in the market." Prices have already hit a nine-year low, dropping to a mere $10 per pound—a concerning figure for mining companies and the global EV supply chain. The Economic Implications For the DRC, the decision to extend the ban is part of a broader strategy to control the cobalt market and drive up its price. By restricting exports, the government hopes to reduce the oversupply and create a more stable pricing environment. However, this move comes with its own set of risks. The EV industry, which is already facing supply chain disruptions due to geopolitical tensions and logistical issues, could be severely impacted by further cobalt price hikes. Automakers and battery manufacturers who rely heavily on cobalt may be forced to pay higher prices or seek alternative sources of the mineral—though such alternatives are limited at present. Cobalt is essential not just for electric vehicles but also for renewable energy storage solutions, meaning that any significant disruption in its supply chain could potentially affect global green energy initiatives. A Divided Industry While the Congolese government seeks to balance the market, the move has sparked division among key stakeholders, particularly within the mining industry. On one side, major mining corporations, including Glencore, the world's second-largest cobalt producer, have expressed support for the export ban and the idea of export quotas to manage distribution more effectively. Glencore, which operates large-scale mining operations in the DRC, believes that controlling the flow of cobalt could benefit producers in the long term by reducing volatility and stabilizing prices. The company has proposed a quota system, which would regulate the amount of cobalt that can be exported at any given time, ensuring that the supply is distributed in a more orderly manner. On the other hand, China Molybdenum Co. (CMOC), the largest producer of cobalt in China, has strongly opposed the export suspension. CMOC argues that the ban is harmful to the global supply chain, particularly to Chinese companies that rely on steady cobalt imports for their battery production. The company has called for the immediate lifting of the ban, warning that continued restrictions could lead to shortages that may slow down the global transition to electric vehicles. What's Next for the Global Cobalt Market? As the extended suspension continues until at least September, the global cobalt market is bracing for further uncertainty. The Congolese government has yet to announce whether it will modify, extend, or fully lift the ban after the three-month period. Given the country's dominant role in the cobalt supply chain—accounting for around 70% of global production—the DRC's decisions will continue to have a ripple effect throughout the industry. Experts are also eyeing the DRC's discussions on introducing an export quota system, which could potentially create a new framework for managing cobalt exports. Such a system could balance the needs of both mining companies and the international market, but its successful implementation would require careful negotiation and cooperation between stakeholders. The Road Ahead The DRC's cobalt export ban presents a critical juncture in the global pursuit of sustainable technologies. As the demand for electric vehicles continues to soar, the need for a stable, reliable supply of cobalt will only grow. How Congo manages its cobalt reserves and exports in the coming months could either bolster its position as the world's leading supplier or disrupt the supply chain for industries around the globe. For the electric vehicle industry, the stakes are high. Companies that rely on cobalt for their batteries may face rising costs, limited supply, and potential delays. At the same time, the DRC's decision to control its cobalt market reflects a growing trend of resource-rich nations seeking to maximize the value of their natural resources, a trend that could shift the global balance of power in the mineral supply chain. As the situation evolves, all eyes will be on Congo and the world's largest cobalt producers, as the global transition to electric vehicles hangs in the balance. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean