Cobalt prices remained elevated through the second quarter of 2025 after making a dramatic price surge early in the year.
The market tailwinds were largely attributed to the Democratic Republic of Congo’s (DRC) ongoing export ban on cobalt hydroxide.
First announced in February, the ban sparked a sharp price rally by mid-month, pushing standard-grade cobalt metal as high as US$15.75 per pound and lifting monthly averages by 45 percent, its most bullish move since 2022.
Prices for cobalt sulfate jumped even more steeply, climbing 74 percent month-over-month.
“If the DRC government wanted to flex its muscles and show miners and refiners who really controlled global cobalt reserves, it would appear they’ve succeeded for now,” wrote Fastmarkets’ Rob Searle in an April market update.
“Standard grade cobalt metal prices soared to highs not seen since November 2023 in the space of two weeks,” he added.
While prices initially stabilized in mid-April on renewed optimism from China, where futures markets rallied, sentiment remained fragile heading into May. With the DRC ban still in place and little progress reported in negotiations, cobalt prices held steady between US$15 and US$16 per pound.
According to Fastmarkets, import data from China showed a surge in cobalt hydroxide deliveries in March and April, though volumes were expected to taper off through the summer.
“For now, the cobalt market appears to have stabilized, with prices high enough to encourage sellers to offer material out. Refiners in China appear to have ample stocks of feed to continue to supply contract volumes,” Searle noted in a May overview.
He continued: “This month, we expect to see a reduction in import volumes of cobalt hydroxide into China. This is expected to tighten refinery feed out to August, should the export ban end towards the later stages of June, as initially planned.”
DRC extends export controls
After plunging to a nine year low in late January and then rebounding to multi-year highs by the end of Q1, cobalt prices began to ease in early June as supply uncertainty weighed on the market.
Despite the ongoing export ban in the DRC, trade data from China showed a significant influx of cobalt in April.
Imports of cobalt metal rose 60 percent month-on-month, driven largely by Indonesian supply, while exports surged 202 percent year-over-year.
“We are still seeing cobalt units arriving in China — or at least we were in May, which is the last month for which trade data were available,” said Olivier Masson, principal analyst at Fastmarkets, during a June presentation at the Lithium Supply and Battery Raw Materials conference.
According to Masson, China imported 75,000 metric tons of cobalt from the DRC in the first five months of 2025, along with another 22,000 metric tons in mixed hydroxide precipitate (MHP).
Of that MHP, 17,000 metric tons came from Indonesia. A region that is becoming increasingly important to the cobalt sector, especially as the DRC extended its export controls into September.
Although Indonesia is projected to increase its output, “the supply of cobalt from Indonesia is not going to be large enough to offset the loss of supply from the DRC,” said Masson.
Supply expected to slow in H2
Cobalt supply has surged over the past five years, with global mine production more than doubling from 140,000 metric tons in 2020 to 290,000 metric tons in 2024.
This rapid growth has far outpaced demand from the electric vehicle (EV) sector and other end users, resulting in a significant oversupply.
However, with the DRC -which accounts for roughly 70 percent of global cobalt production- extending its export limitations into the second half of the year mined supply is expected to register more muted gains in 2025.
“We expect mine supply growth to slow this year,” said Masson. “Prices are at multi-year lows, and yet, despite that, we still saw relatively strong growth numbers from major producers in the country.”
With exports stalled, inventories are building up in the DRC , a dynamic that may force operational adjustments.
“We might see miners who principally produce copper — and get cobalt as a by-product — start mining lower-grade cobalt ores in order to manage the inventories that are piling up,” Masson explained.
He added that cobalt sulfate demand slowed in 2024 due to a weaker-than-expected EV market in the West.
In response, Chinese refiners pivoted to producing cobalt metal instead, a shift that has significantly impacted global trade dynamics.
“Just like they did for nickel, Chinese refiners switched to cobalt metal production,” Masson said. “As a result, we’ve seen cobalt metal exports out of China jump by over 230 percent from January to May.”
Masson went on to explain: “This level of export growth is likely unsustainable. There’s limited feedstock coming from the DRC due to the export ban, and that will inevitably constrain Chinese production going forward.”
Strategically diversifying supply
As the global market looks ahead, geopolitical dynamics are taking on greater significance.
The US, which is seeking to secure non-Chinese sources of critical minerals, is actively engaged in negotiations with the DRC. At the same time, it’s backing infrastructure development, including support for the Lobito Corridor , a rail and port route that would allow DRC-sourced cobalt to be exported via the west coast of Africa, bypassing China entirely.
“Currently, about 83 percent of the DRC’s cobalt exports go to China,” Masson said. “But both the DRC and the US are motivated to diversify those flows.”
However, the US still lacks sufficient domestic PCAM capacity, a key step in the battery supply chain, which could limit its ability to process cobalt independently in the short term.
Looking at market dynamics more broadly, Masson said Fastmarkets expects cobalt supply to remain “adequate” in the near term. But with inventories outside the DRC being steadily drawn down, tighter conditions could emerge later this year.
“By August or September, we could start to see the market tightening,” he said. “Our price forecast before the export ban was extended … but now, there’s potential for prices to remain elevated longer than previously expected.”
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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