The Democratic Republic of Congo has extended its cobalt export ban by three months to address market oversupply and low prices. Authorities will decide by September whether to lift or further extend the ban. While Glencore supports export quotas, top producer CMOC is pushing for the ban to be lifted.

A regulatory agency announced on Saturday that the Democratic Republic of Congo has extended its ban on cobalt exports for an additional three months. This measure is intended to address the persistent oversupply of cobalt, a critical mineral widely used in the production of electric vehicle batteries. The extension reflects ongoing concerns about market saturation and price volatility.

The Democratic Republic of Congo, which holds the distinction of being the world’s largest supplier of cobalt, had initially imposed a four-month export ban in February. That decision followed a sharp decline in cobalt prices, which had fallen to a nine-year low of just $10 per pound. The original ban was scheduled to expire this Sunday, but the new extension will now keep it in place until September.

In a statement, the Strategic Mineral Substances Market Regulation and Control Authority, known as ARECOMS, explained the rationale behind the move. “The decision was taken to extend the temporary suspension due to the continued high level of stocks on the market,” the agency said, highlighting the ongoing imbalance between supply and demand.

ARECOMS also stated that it plans to issue a further decision before the end of the newly extended period. This decision will determine whether the suspension will be lifted, modified, or prolonged further, depending on the evolution of the market and stock levels.

According to a report by Reuters on Friday, Congolese authorities were already considering the extension as part of a broader review process concerning the allocation of cobalt export quotas among mining companies operating within the country. This review is expected to result in a more structured approach to managing the country’s cobalt resources.

The proposal to introduce export quotas has received support from several major industry players. Among them is Glencore, the world’s second-largest producer of cobalt, which has expressed its approval of the quota system as a means to stabilize the market. However, this position is not universally shared across the sector.

In contrast, the Chinese company CMOC, currently the leading cobalt producer, has been actively campaigning for the immediate lifting of the export ban. CMOC argues that continued restrictions could negatively impact production and supply chains, especially for companies that rely on uninterrupted access to Congolese cobalt.

The differing stances of Glencore and CMOC underscore the complex dynamics at play in the global cobalt market, as stakeholders weigh the benefits of market regulation against the risks of prolonged trade disruptions. The situation remains fluid, and the next decision by Congolese authorities in September will be closely watched by investors, manufacturers, and policymakers worldwide.