- DRC, Indonesia, Chile in talks to form ‘critical minerals OPEC’.
- DRC cobalt export ban rises prices significantly.
- DRC to leverage its dominant market position through ban.
The DRC move to ban cobalt exports has not only sparked price increase of the critical mineral market, but, it has also set off talks of the set up of a ‘critical minerals OPEC.’ Reports show that the DRC, Indonesia, and Chile are key players in the global critical minerals landscape.
DownToEarth, a resource review agency notes in a recent report Critical minerals, development and agency: Are resource-rich countries in control of their mineral wealth? that other critical minerals that may fall under the control of the tripartite include lithium, nickel, cobalt, copper, and rare earth elements.
“These minerals are essential for the transition to clean energy technologies, including electric vehicles, renewable energy, and energy storage,” it stated in part.
Global demand for these minerals is expected to increase significantly in the coming years, the survey shows.
DRC placed a temporary ban on the export of cobalt the aim of the ban was to curb oversupply of cobalt in the global market. “The country (DRC) also consulted with Indonesia, another key producer of the mineral to partner with and regulate the global supply,” reads the report.
Currently, DRC is the major cobalt producer, Indonesia a top nickel producer, and Chile holding significant lithium reserves and is also a major copper producer. That being the case, Indonesia now plans to increase royalties on nickel which will have an effect on cobalt as the former typically contains 1-2 per cent of cobalt as its by-product.
As the impact of DRC cobal ban reverberates across the world, the market is not new to such shocks given that Indonesia has banned the export of nickel ore since 2020.
“Similar bans have been instituted by Zambia and Zimbabwe, pointing to one among various tools countries have at their disposal to control how their resources are extracted and profited from globally,” it details.
While the motivations for each country have varied, the report poses two key questions: How do resource-rich countries of the Global South — who will play a crucial role in the new global, green economy — capture more economic value from their own resources? Secondly, do governments have agency in determining how extraction and development of the local supply chain progresses?
“Indonesia’s move to ban the export of raw nickel is one of the foremost examples of a government choosing to control how its mineral sector is developed,” the report details. The move was intended to transform Indonesia’s status in the global supply chain by incentivizing investment in the country’s downstream nickel industries such as refining and battery manufacturing.
Overall, adding value to the raw material, like DRC is seeking to do, albeit with a myriad of challenges, as opposed to merely supplying the raw material and losing out on earnings from value addition, is the end goal of all mineral producers.
To this end, “Chinese companies have moved quickly and emerged as key players in Indonesia’s nickel industry since the ban,” the report points out.
Indonesia’s ban, as is the one by DRC, made global ripples, with the European Union (EU) even suing Indonesia at the World Trade Organisation (WTO) in 2020, claiming that the ban was in violation of principles of international economic justice.
“Though the WTO ruled in favour of EU in 2022, Indonesia appealed the decision and a final outcome remains to be achieved,” details the report.
Resource rich countries have deployed this tactic in the past as well, such as Zimbabwe’s raw chromium ore ban in 2021 and China’s selective export restrictions for several critical minerals over time.
Zambia, the fourth largest copper producer globally also enforced bans on the export of copper concentrate to foreign smelters in the past, in order to maximise its economic gains.
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DRC, Indonesia, Chile resource capacity
In terms of amounts; “The DRC is the world’s largest cobalt producer, contributing to over 70% of global cobalt production,” the report attests. Cobalt is a critical mineral used in batteries for electric vehicles and other applications. The DRC also has significant deposits of copper, tin, tantalum, and lithium.
All said and done, the report estimates that the DRC’s mineral wealth is in excess of $24 trillion
When it comes to Indonesia, you have a major nickel producer, another critical mineral for batteries and stainless steel alloys. “Indonesia has banned the export of nickel ore to promote domestic processing and value addition,” the report notes, much akin to what the DRC is doing with cobalt.
Indonesia is also exploring other critical minerals, including lithium and rare earth elements.
As for Chile, it holds the world’s largest reserves of lithium, yet another key component of batteries for electric vehicles and energy storage. The report points out that Chile is also a major copper producer, with copper being essential for power grids and other infrastructure.
“Chile plans to nationalize its lithium industry and develop more sustainable extraction technologies,” the report details.
DRC cobalt export ban, reason and effect
DRC’s decision to implement a cobalt export ban in February 2025 comes after years of market imbalance that severely impacted this critical battery metal’s value, explains market expert John Zadeh for Discovery Alert.
“The ban represents a strategic attempt by the world’s largest cobalt producer to regain control over pricing and stabilize a market that had become increasingly volatile,” the expert details.
According to the expert; “Global cobalt mine supply witnessed an unprecedented surge, increasing by 107 per cent from 140,000 metric tonnes in 2020 to 290,000 metric tonnes in 2024.”
“This dramatic production increase significantly outpaced demand growth, creating a persistent oversupply situation that drove prices to unsustainable levels,” he explains.
Worse yet; “By January 29, 2025, cobalt prices had plummeted to a nine-year low of US$21,467.70 per metric ton, representing a crisis point for producers worldwide,” he details.
The expert notes that while the mining country suffered, major players like China Molybdenum Co. (CMOC) maintained aggressive production targets, with 2025 guidance remaining high at 100,000-120,000 metric tonnes, virtually unchanged from 2024 levels.
He concludes pouting out that; “Industry experts had already predicted challenging conditions before the ban was announced.”
So what was the DRC to do? “Facing continued price deterioration and recognizing the importance of cobalt to its national economy, the DRC announced a four-month export suspension on February 22, 2025.”
“This decisive action, scheduled to remain in effect until the end of June, specifically targets cobalt hydroxide shipments while allowing continued production and stockpiling activities within the country,” he details.
Now DRC government officials indicate they plan to review the embargo after three months to assess its effectiveness and export ban market impact.
“This strategic approach allows the DRC to leverage its dominant market position—accounting for over 60 per cent of global cobalt production—to influence worldwide supply dynamics,” the expert concludes.
