Rising Costs in the Supply Chain
Around October 21, 2025, new industry data revealed that global automakers’ cobalt expenditures jumped 51% year-over-year, reflecting both higher procurement costs and supply disruptions linked to the Democratic Republic of Congo’s new export quota system. As DRC producers await permit approvals, cobalt availability has tightened, prompting car manufacturers and battery makers to secure material at higher prices. The surge underscores how regulatory shifts in a single jurisdiction can reverberate across global electrification supply chains.
Policy Shock Meets Market Dependence
The DRC—responsible for roughly three-quarters of global cobalt output—introduced its quota framework in mid-October to improve oversight of exports and curb informal trading. While intended to formalize artisanal mining and boost state revenues, the policy rollout has slowed shipments and added complexity to procurement contracts. Analysts note that major OEMs are now diversifying supply through recycling and new African sources in Zambia, Morocco, and Madagascar, yet the short-term market remains highly exposed to Congolese regulatory delays.
The Race for Supply Security
The 51% spending increase reflects a deeper structural challenge: the automotive sector’s reliance on fragile mineral networks amid the energy transition. Companies such as Tesla, BYD, and Volkswagen are revisiting long-term supply agreements and exploring joint ventures with refiners to mitigate future disruptions. For now, the DRC’s policy experiment serves as a powerful reminder that the balance between governance, equity, and efficiency will define the sustainability of global critical mineral markets in the decade ahead.