The Democratic Republic of Congo is a land rich in minerals essential to the energy transition; the country is often described as a victim of exploitation by China, the United States and Europe. But the DRC can influence the market for many minerals such as cobalt, for example, of which it is the single largest producer. Cobalt reduces overheating in batteries and is essential in the production of electric vehicles.
There is a high level of control by the DRC government, both nationally and regionally, over mining; decisions are made in Kinshasa, or in mining region capitals like Kolwezi, and are felt throughout the global battery supply chain: as a producer of 70% of the world’s cobalt, the DRC has influence over the global supply chain for electric vehicle batteries, reports The Conversation.
However, the DRC is not using this influence to the benefit of the DRC population. An estimated 74% of people in the DRC continue to live in poverty. Some mining revenues go to the government, but communities living near the mines see little improvement in their daily lives: poverty, pollution, and dangerous working conditions.
Today, DRC cobalt is shipped to China, which accounts for 65% of all global cobalt processing into lithium-ion battery cathodes, i.e. rechargeable batteries. China is also the world’s largest producer of these batteries and dominates the electric vehicle industry. In 2023, one in five cars sold worldwide was an electric vehicle.
In China, the cobalt refining and battery manufacturing industry has grown rapidly over the past two decades. Chinese companies have invested heavily in developing advanced processing technologies and large-scale production facilities.
These factories process raw DRC cobalt into high-purity cobalt compounds and integrate them into battery cathodes. Chinese companies such as Huayou Cobalt, CATL and BYD have become world leaders in cobalt refining and battery production, supplying the global electric vehicle market.
While Chinese mining companies, both private and state-owned, control vast cobalt deposits in the DRC, the DRC itself can exert significant influence over the broader industry: when the central government suspended exports from the largest Chinese-owned cobalt mine in 2022 due to financial disputes, it temporarily halted about 10% of global cobalt production.
Local politics can also cause production to stall. For example, the Chinese cobalt industry sources cobalt from artisanal miners, and in 2021 the DRC national government cancelled contracts with artisanal sites, despite them being approved by the provincial government. As Kinshasa pushed for a centralized purchasing company for artisanal cobalt produced in the province, provincial interests clashed with this approach. Chinese operators found themselves caught in the middle. Lengthy negotiations between the Chinese and the Congolese ensued, leaving the company in a slippery slope, depending on the political will of both Kinshasa and Kolwezi. Added to this is the precarious security and stability situation in the country.
The government has also been able to use its influence on minerals by pushing for better terms in mining contracts and more domestic processing of minerals. In 2018, for example, it declared cobalt a “strategic” resource and tripled export taxes.
However, despite the influence the DRC can exert on the sector, those who should benefit from the lucrative cobalt industry, such as miners, do not. Today, there are at least 67 artisanal cobalt mines in southeastern DRC. Approximately 150,000 artisanal miners work in the sector and face dangerous conditions.
Maddalena Ingrao
Follow our updates on Geopolitical Gleanings: and on our blog Le Spigolature di AGCNEWS: