London Metal Exchange cobalt prices found support around $28,200 per tonne on Thursday, June 4, stabilising after a volatile three-week period during which prices swung sharply on conflicting reports about mining output in the Democratic Republic of Congo. Clarifications from Glencore and Chinese mining companies operating in Lualaba Province confirmed that artisanal mining disruptions — which had briefly halted output at several medium-scale operations — were being resolved through negotiations with local authorities.

The DRC accounts for roughly 70% of the world’s mined cobalt, making it the single most critical node in the global battery supply chain. Any sustained interruption to Congolese output creates immediate anxiety among battery manufacturers in China, Japan, and South Korea, who depend on a steady flow of hydroxide intermediates for electric vehicle and energy storage production.

Battery industry analysts note that the market has been gradually shifting its risk posture. Several major EV manufacturers, including BYD and Stellantis, have been accelerating the adoption of lithium iron phosphate chemistries that significantly reduce or eliminate cobalt dependency. However, high-energy-density applications — including aviation batteries and premium passenger EVs — continue to require cobalt-rich cathode formulations, meaning the market remains structurally exposed to Congolese supply disruptions for at least another five years.

Offtake agreements negotiated through the Cobalt Institute and bilateral government-to-government deals between the DRC and the European Union are expected to provide longer-term supply security, though enforcement and revenue-sharing disputes remain persistent challenges to supply chain stability in the region.