Cobalt Crisis: Congo Export Curbs Push Prices Near $25/lb — Why It Matters for EV Batteries

Feb 25

2 min read

Updated: 5 days ago

Cobalt crisis graphic: Congo export curbs push cobalt from $10/lb to $25/lb, with supply flowing to China

Cobalt is not a “headline metal” like gold or crude — but when it moves, it matters.

Why? Cobalt serves as a crucial component for electric vehicle batteries and high-performance alloys. And right now, the supply chain is feeling a squeeze.

What happened

Congo (the biggest source of cobalt intermediates) tightened export controls through restrictions and quotas.
Shipments to China dried up sharply in late 2025, forcing buyers to scramble.
Result: refined cobalt prices surged from ~$10/lb to about $25/lb.

Why prices jumped

1) Congo is the main tap

Congo accounts for 70%+ of global mined cobalt, so when Congo tightens the tap, the whole world feels it.

2) China refines the most — but depends on imports

China refines a huge share of global cobalt, but it still needs raw/intermediate imports. When Congo supply slows, China’s “processing dominance” doesn’t help much.

3) Quotas + tighter rules = slower flow

Export quota systems and new compliance checks can slow shipments even if mining continues — that’s how shortages form.

Why you should care (EV + tech angle)

If cobalt stays expensive:

EV battery costs can face pressure (especially in cost-sensitive segments)
Battery makers and OEMs may push faster toward cobalt-saving chemistries
“Critical minerals” become a bigger geopolitical and supply-chain story

(This isn’t about one day’s price move — it’s about supply control.)

Nishi’s takeaway

This is a classic commodity lesson:

Price doesn’t move first. Supply moves first. Price reacts later.

If Congo stays strict on exports, cobalt can remain volatile — and spikes can repeat.

Disclaimer: Educational explainer only. Not investment advice.

About the author

Nishi Jain is a full-time trader based in Jaipur, Rajasthan, and ex-JioBlackRock. More about Nishi →