Cobalt Crisis: Congo’s Export Ban Extension Sends Shockwaves Through Global Markets

In a move that has sent ripples across the global metals and mining sector, the Democratic Republic of Congo (DRC) has extended its export ban on cobalt, a critical component in the production of batteries and alloys. This decision, announced on June 21, 2025, has extended the ban for an additional three months, covering all forms of cobalt extraction. The DRC, holding approximately 55% of the world’s cobalt reserves and producing 76% of its global output in 2024, is the largest cobalt producer and exporter. This extension is expected to significantly impact global cobalt supply, potentially shifting the market from a surplus to a deficit of 7.8 million tons in 2025, according to estimates by CITIC Securities.

Nanjing Hanrui Cobalt Co Ltd: Riding the Wave of Market Volatility

Amidst this backdrop of supply constraints, Nanjing Hanrui Cobalt Co Ltd, a leading materials company specializing in cobalt and copper ores, has seen its shares surge. Listed on the Shenzhen Stock Exchange, the company’s stock price rose by as much as 14% following the announcement of the export ban extension. This surge is part of a broader trend in the energy metals sector, with companies like Ganzhou Teng Yuan Cobalt New Material Co and Zhejiang Huayou Cobalt Co also experiencing significant gains.

Nanjing Hanrui Cobalt Co Ltd, with its diverse product range including cobalt powders and various cobalt-based compounds, operates across several key markets, including China, South Korea, Japan, and the United States. The company’s strategic positioning and operational capabilities have placed it at the forefront of the cobalt industry, poised to capitalize on the current market dynamics.

Market Implications and Future Outlook

The extension of the cobalt export ban by the DRC is a critical development for the global metals and mining sector. With the DRC’s cobalt production accounting for a significant portion of the global supply, the ban’s extension is likely to exacerbate existing supply constraints, driving up cobalt prices and impacting industries reliant on this essential metal.

Analysts, including Thomas Matthews from CRU Group, predict an initial spike in cobalt prices, with more significant pressure expected later in the year as intermediate stocks begin to deplete. This situation underscores the importance of strategic sourcing and supply chain resilience for companies operating in the metals and mining sector.

For Nanjing Hanrui Cobalt Co Ltd, the current market conditions present both challenges and opportunities. The company’s ability to navigate the complexities of the global cobalt market will be crucial in maintaining its competitive edge and capitalizing on the potential for increased demand and higher prices.

As the situation evolves, stakeholders in the metals and mining sector will be closely monitoring developments in the DRC and their implications for the global cobalt market. The extension of the cobalt export ban is a stark reminder of the geopolitical and economic factors that can influence commodity markets, highlighting the need for strategic planning and adaptability in an increasingly volatile global landscape.