DR Congo Quota System Reshapes Cobalt Market as Glencore Adjusts Output and Shipments

Mintesinot Niggusie

Cobalt producers in the Democratic Republic of the Congo are operating under a government quota system that restricts export volumes and requires excess output to be stored domestically until shipment is permitted. The framework is expected to remain in place until at least 2027 as authorities manage supply after a period of market volatility.

The policy shift followed an export suspension in early 2025, introduced after cobalt prices fell to nine-year lows. The suspension was later replaced in October by a quota-based system designed to regulate exports and stabilise market conditions.

Since the introduction of restrictions, cobalt prices have risen by about 160 percent to roughly 26 US dollars per pound, reflecting tighter global supply.

Production has adjusted to the new environment. Glencore, one of the world’s largest diversified resource groups involved in mining and global commodity trading, reported cobalt output of 5,800 tonnes in the first quarter of 2026, down 39 percent year-on-year.

The company’s business model combines mining operations with large-scale trading and logistics of commodities such as copper, cobalt, nickel and energy products across global markets. In the DR Congo, its operations are among key suppliers of cobalt used in battery supply chains.

Under the quota system, production exceeding allocated limits is stored locally and released only when export permission is granted. This has led companies to adjust processing schedules, including delaying final cobalt refining to align with shipment constraints.

For 2026, Glencore said its total export allocation, including carryover from 2025, stands at 22,800 tonnes. The company added that its key assets, including Kamoto Copper Company and Mutanda, hold sufficient inventories to meet near-term quota requirements.

The Congolese government extended the validity of 2025 quotas until April 2026 to support the transition to revised export procedures. Most of Glencore’s 2025 allocation was shipped in the first quarter, with remaining volumes exported in April.

Unused quotas from early 2026 remain valid until the end of June, giving producers limited flexibility as they adapt to the controlled export framework.