The Democratic Republic of Congo (DRC) is moving to address rising cobalt stockpiles after suspending exports in February 2025 and introducing quotas in October, in a bid to prevent a market glut and further price declines.

At a cabinet meeting on April 10, 2026, the government approved a draft decree establishing a strategic reserve for key minerals. The text still requires signature and publication in the official gazette. Cobalt, germanium and coltan have been classified as strategic minerals since November 2018, but sources say the current focus is primarily on cobalt.

Sources add that the reserve is intended to manage stockpiles accumulating as a result of export restrictions. Official data show that despite the curbs, the DRC produced 100,015.28 metric tons of cobalt in 2025. With exports limited to 44,338.47 tons, the surplus reached 55,676.81 tons.

Production is expected to continue in 2026, as cobalt is a byproduct of copper, whose prices are rising. Stockpiles could therefore keep growing, even as exports increase. Shipments could reach 114,316.55 tons this year, including 87,000 tons in company quotas, 9,600 tons in strategic allocations, and 17,716.55 tons in unused 2025 quotas carried over due to delays in the new export system, initially extended to March 31 and later to April 30, 2026.

“Without an appropriate mechanism, stockpiles could continue to grow, creating problems for both producers and the state,” Patrick Luabeya, head of the Regulatory and Market Control Authority for Strategic Minerals (Arecoms), told Jeune Afrique. The agency has been tasked with building and managing the reserve. A separate draft decree amending the November 5, 2019 regulation that created Arecoms was also adopted.

A Fragile Rebound in Prices

Rising inventories are tying up output, weighing on cash flow and increasing storage costs for mining companies, while adding downward pressure on prices. Without regulation, a sudden release of these volumes could trigger another price drop, undermining the impact of export restrictions and quotas.

The strategic reserve is designed to absorb excess supply and prevent further market destabilisation. Authorities say it will help stabilise prices, maximise the value of strategic minerals and strengthen the country’s economic sovereignty.

Jeune Afrique said it reviewed the draft decree and reported that the reserve will be held partly in the DRC and partly abroad, and built through purchases of stock held by mining companies. The financing mechanism has not been disclosed.

Despite export restrictions, the DRC still accounted for more than 76% of global cobalt output in 2024, according to the World Bank. Yet average prices stood at $33,910 per ton, well below the $80,000 peak reached in April 2022.

“This modest recovery reflects persistent oversupply, rapid growth in alternative sources, particularly mixed nickel hydroxide precipitate from Indonesia, and the accelerating shift toward cobalt-free lithium-ion batteries in electric vehicles, all of which are reducing demand for cobalt-rich materials,” the World Bank said in a March report on the country’s economic outlook. The institution expects cobalt prices to decline or remain broadly stable in 2026.

Pierre Mukoko