Congo wants to address the surplus by partnering with Indonesia and imposing cobalt export quotas

The prime minister of the Democratic Republic of the Congo claims that after a four-month export restriction, the country will set export limitations for cobalt and will collaborate with Indonesia, another major producer, to control world supply and prices.

On Friday, the announcement was made at a cabinet meeting.

The cabinet meeting minutes, which Reuters obtained on Wednesday, show that the quotas will be implemented in two phases, one concentrating on exports and the other on domestic mineral transformation, in an effort to reduce a global supply glut.

DRC, the world’s largest producer of cobalt, was considering export quotas after an export ban was imposed, according to sources who spoke to Reuters in February.

The price of cobalt, an essential component of batteries for mobile phones and electric cars, has dropped to all-time lows as a result of increased supply of copper, from which cobalt is a byproduct, and sluggish demand from automakers.

According to Prime Minister Judith Suminwa Tuluka, efforts are underway to work with Indonesia, another major producer of cobalt, to better control the price and supply of cobalt on the international market.