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The Democratic Republic of Congo, which produces roughly 70-80% of the world’s cobalt, is done playing nice with miners who hoard export allocations. Under a strict new quota regime, any unused monthly export allocations will be forfeited and rolled into a government-controlled strategic reserve starting in January 2026.
The new rules of the game
The DRC has set annual export caps at 96,600 tonnes for both 2026 and 2027. Of that total, 87,000 tonnes will be distributed among major producers on a pro-rata basis, while the remaining 9,600 tonnes are earmarked for the government’s strategic reserve, managed by the regulatory body ARECOMS.
The big names getting allocations include CMOC, which is slated for roughly 6,650 tonnes, and Glencore, which received approximately 3,925 tonnes. Glencore reportedly secured an extension due to shipping delays in early 2026. Eurasian Resources Group (ERG) is also among the major recipients.
This quota system followed an extended export ban that the DRC imposed to reassert control over its most valuable mineral resource. President Félix Tshisekedi is backing enforcement with serious teeth: violators face permanent export bans.
Cobalt prices tell the story
The market has already responded dramatically. Cobalt prices climbed from around $21,000 per tonne in early 2025 to over $56,000 per tonne by mid-2026. That’s roughly a 167% increase in about 18 months.
Oversupply, largely driven by the DRC’s own miners and aggressive expansion by Chinese-backed operators like CMOC, had cratered prices before the DRC intervened. The export ban and subsequent quota system effectively flipped the supply dynamics overnight.
Why crypto investors should care
Cobalt is a key component in lithium-ion batteries, which power everything from electric vehicles to the energy storage systems that support data centers. Rising cobalt prices mean more expensive batteries, which means higher costs for grid-scale energy storage — trickling down to operational expenses for any energy-intensive industry, crypto mining included.
The DRC’s quota system includes compliance measures aimed at improving traceability and responsible sourcing. Cobalt mining in the Congo has long been associated with child labor and dangerous working conditions, particularly in artisanal mining operations. For blockchain-based supply chain tracking solutions, a regulatory environment that demands traceability is a potential growth catalyst.
The risk for investors is on the demand side. Lithium iron phosphate batteries use no cobalt at all. Tesla has already been moving toward cobalt-free battery designs for its standard-range vehicles, and other manufacturers are following suit. So the DRC is betting that cobalt remains essential enough to justify supply control — a bet the market is currently validating, with prices more than doubling.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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