Cobalt prices soared on Monday following supply concerns, after Eurasian Resources Group (ERG) declared force majeure on deliveries due to the Democratic Republic of Congo’s (DRC) export ban on the crucial battery material.
Trading on China’s Wuxi Stainless Steel Exchange was halted after cobalt prices jumped nearly 12% to around 240 yuan per kg, their highest level since October. In Europe, standard-grade cobalt warehoused in Rotterdam surged to $12.25 per lb on March 7, up from $10.80 on March 4 and $9.95 on February 24, according to Fastmarkets data.
In February, the Congolese government imposed a four-month ban on cobalt exports to address oversupply and falling prices, which had slumped to a nine-year low of $10 per lb ($22,000 per metric ton).

ERG, a Luxembourg-based mining giant, is Congo’s third-largest cobalt producer. The company invoked force majeure—a legal clause that frees firms from contractual obligations due to unforeseen circumstances—on cobalt deliveries from its Metalkol operation, sources told Reuters last week.
The ERG force majeure declaration has fueled a sharp price rally, with European traders citing growing concerns over tightening supplies.
“The Chinese are not selling metal. There is a growing realisation that Congo means business,” one European cobalt trader said on condition of anonymity.
ERG’s Metalkol operation produced an estimated 19,200 metric tons of cobalt in hydroxide last year, accounting for 9% of total Congolese production, according to Darton Commodities. This represents 7% of global cobalt supply, which stood at over 280,000 tons in 2023.
Other major cobalt producers in Congo include Glencore, a London-listed miner, and China’s CMOC Group.
The Congolese government plans to review the ban in three months, with the possibility of modifying or terminating it, depending on market conditions. Authorities are also considering introducing export quotas, which will be negotiated during the suspension period.
With Congo supplying over 70% of the world’s cobalt, traders and manufacturers are closely monitoring the situation, as further restrictions could push prices even higher.