The Democratic Republic of Congo (DRC) is taking steps to stabilize the cobalt market, which has been plagued by oversupply and weakened demand from automakers. A Congolese ministerial committee has proposed additional measures to strengthen the temporary ban on cobalt exports, including collaboration with Indonesia, the world's second-largest supplier of the critical battery metal.

The DRC halted cobalt shipments in late February, citing a sharp price decline driven by global oversupply and weakened demand from automakers. Since then, cobalt prices have rebounded, but the government is exploring long-term strategies to maximize the value of its cobalt resources and prevent an oversupply when the ban is lifted.

The Congo's Economic Situation Committee, led by Prime Minister Judith Suminwa Tuluka, has recommended steps for the "efficient management" of the export suspension. Among the key proposals is securing Indonesia's cooperation to help regulate global cobalt supply and stabilize prices. This partnership would be crucial, as Indonesia's share of global cobalt supply has been rising, reaching 11% last year, according to Darton Commodities.

In both countries, cobalt is extracted as a byproduct, alongside copper in Congo and nickel in Indonesia. The committee also suggested introducing export quotas and increasing domestic processing requirements, though details were not disclosed. The DRC government has been weighing production and export restrictions for over a year as it seeks to exert greater control over the cobalt market.

The move to stabilize the cobalt market is significant, given the metal's critical role in the production of electric vehicle batteries. As the global demand for EVs continues to grow, the supply of cobalt has become a key concern. The DRC's efforts to regulate the market and prevent oversupply could have a significant impact on the global EV industry.

The collaboration with Indonesia is also noteworthy, as it highlights the growing importance of cooperation between major cobalt-producing countries. As the world transitions to cleaner energy sources, the demand for critical minerals like cobalt is expected to increase. Effective management of these resources will be crucial to meeting global climate goals.

In conclusion, the DRC's proposal to strengthen its temporary ban on cobalt exports and collaborate with Indonesia marks a significant step towards stabilizing the global cobalt market. As the world continues to transition to cleaner energy sources, the effective management of critical minerals like cobalt will be crucial to meeting global climate goals.