Political Economy Analysis:

Cobalt Mining and Exports in the
Democratic Republic of the Congo

Abstract

The Democratic Republic of the Congo (DRC) dominates global cobalt production, a mineral vital for electric vehicles and advanced technologies. This analysis examines the political economy of DRC cobalt mining and exports, emphasizing China’s pivotal control over mining and refining, the pervasive influence of organized crime in illicit mining and trade, and the critical importance of DRC cobalt for U.S. energy security. While China’s dominance creates supply chain vulnerabilities for the U.S., organized crime undermines governance and local development. Addressing these challenges requires enhanced transparency, formalization of artisanal mining, and strategic international partnerships to ensure ethical, secure, and sustainable cobalt supply chains.

1. Introduction

The Democratic Republic of the Congo (DRC) is the world’s leading cobalt producer, supplying over 70% of global mined cobalt—a mineral critical for lithium-ion batteries, electric vehicles (EVs), and advanced electronics.¹ The DRC’s cobalt sector is a nexus of global energy transitions, geopolitical competition, and local governance challenges. This analysis explores three key dimensions: the dominant role of China, the involvement of organized crime, and the importance of DRC cobalt for U.S. national energy security.

2. The Role of China in DRC Cobalt Mining and Exports

2.1. Historical Context and Strategic Investments

China’s engagement in the DRC’s mining sector intensified with the 2008 Sino-Congolaise des Mines (Sicomines) agreement, which granted Chinese firms extensive mining rights in exchange for infrastructure development.² This “resources-for-infrastructure” model has since shaped the sector, with Chinese state-owned enterprises (SOEs) and policy banks investing billions.

2.2 Market Control and Economic Leverage

  • Ownership and Production: China controls 8 of the 14 largest cobalt mines in the DRC, including Tenke Fungurume (CMOC Group Ltd.), Kisanfu (CMOC), and Luiswishi (Huayou Cobalt via Congo Dongfang International).³ In 2023, CMOC Group Ltd. became the world’s largest cobalt producer, surpassing Glencore.⁴
  • Refining Dominance: Over 80% of global cobalt refining occurs in China, with Chinese refineries processing between 60% and 90% of the world’s cobalt supply. This creates a bottleneck, as the DRC lacks domestic refining capacity.⁵
  • Economic Interdependence: Trade between China and the DRC reached $27 billion in 2024, dwarfing U.S.-DRC trade ($820 million). Chinese investment has enabled the DRC to triple copper and nearly triple cobalt output in a decade.⁶

2.3. Political and Strategic Implications

China’s dominance gives it significant leverage over global cobalt prices and supply chains. This has led to tensions with the DRC government, exemplified by President Felix Tshisekedi’s 2025 cobalt export ban, which was partly a response to CMOC exceeding output targets and driving down prices.⁷ The DRC is seeking to diversify partnerships, but remains heavily dependent on Chinese capital and expertise.⁸

3. Organized Crime and Illicit Networks in Cobalt Mining and Trade

3.1. Structure and Methods

  • Illegal Mining and Smuggling: Artisanal and small-scale mining (ASM) accounts for 10–30% of DRC cobalt production, but much of this is informal and subject to exploitation by criminal networks.⁹ Smuggling routes operate across borders with Zambia, Tanzania, and Burundi, often involving forged documents and bribery of border officials.¹⁰
  • State Collusion: Security forces, border officials, and local authorities are frequently implicated in facilitating smuggling. Military and police escorts are sometimes provided to smugglers, ensuring safe passage of illicit cobalt.¹¹

3.2. Key Actors and Networks

While specific names of crime leaders are rarely disclosed due to the clandestine nature of operations, patterns and case studies reveal:

  • Local Gang Leaders: Control access to mining sites and coordinate with artisanal miners.¹²
  • Transnational Smugglers: Facilitate cross-border movement of cobalt, often via established criminal networks.¹³
  • State-Embedded Actors: Corrupt officials in the Ministry of Mines, border security, and local government enable and profit from illegal mining and smuggling.¹⁴

3.3. Economic and Social Impact

  • Revenue Loss: Smuggling and corruption deny the DRC billions in potential revenue. The lack of effective monitoring and enforcement allows mining licensees—both local and foreign—to operate outside the rules.¹⁵
  • Human Rights Abuses: Children and adults work in hazardous conditions, often without protective equipment. Half of the children working in cobalt mines perform hard, hazardous labor.¹⁶

4. Importance of DRC Cobalt for U.S. National Energy Security

4.1. Strategic Mineral Dependence

Cobalt is classified as a high-impact mineral on the U.S. critical minerals list, essential for EVs, aerospace, and defense technologies. The U.S. is heavily reliant on imports, with the DRC supplying 70% of global mined cobalt.¹⁷

4.2. Supply Chain Vulnerabilities

  • Chinese Dominance: China’s control over both mining and refining creates significant risks for U.S. supply chains. More than 80% of global cobalt refining occurs in China, and the U.S. lacks domestic refining capacity.¹⁸
  • Market Manipulation: Chinese firms, backed by the state, have flooded the global market with DRC-sourced cobalt, driving down prices and reducing tax revenues for the DRC.¹⁹
  • Geopolitical Tensions: The U.S. is increasingly concerned about its reliance on Chinese-controlled supply chains, especially amid rising U.S.-China trade tensions and the risk of export controls on critical minerals.²⁰

4.3. U.S. Policy Responses

  • Investment in Domestic Refining: The Biden administration has introduced financial incentives to bolster domestic cobalt refining. Arizona-based EVelution Energy plans to open a commercial-scale cobalt refining facility in 2027, aiming to import cobalt directly from the DRC.²¹
  • Strategic Partnerships: The U.S. is exploring deeper cooperation with the DRC, including investment in infrastructure such as the Lobito Atlantic Railway, which links Kolwezi to the Angolan coast. The DRC has also offered mineral access in exchange for military assistance against rebel groups like M23.²²
  • Human Rights and Sustainability: U.S. policy increasingly emphasizes responsible sourcing, human rights protections, and sustainable development in the DRC’s mining sector.²³

5. Governance, Policy, and Development Challenges

5.1. Regime Complexities

The DRC’s cobalt sector is governed by a “regime complex” of overlapping and sometimes conflicting international, national, and informal rules. This fragmentation leads to regulatory gaps and inconsistent policy implementation, undermining sustainable and equitable development.²⁴

5.2. Policy Initiatives and Reforms

  • Export Ban and Price Controls: The DRC’s 2025 cobalt export ban was introduced to address oversupply, boost prices, and incentivize local value addition. The ban has led to a surge in cobalt hydroxide prices, rising 112.5% to $11.80/lb CIF China as of May 2025.²⁵
  • Beneficiation and Value Addition: The DRC is seeking to capture more value from its cobalt by promoting local refining and manufacturing, but progress is slow due to limited infrastructure and expertise.²⁶

5.3. Social and Economic Development

  • Poverty and Human Capital: The DRC ranks 164 out of 174 countries on the Human Capital Index, reflecting decades of conflict and fragility. A Congolese child born today can expect to achieve only 37% of their potential due to poor health and education outcomes.²⁷
  • Mining Employment: Artisanal and small-scale mining employs about 12.5 million Congolese, with most involved in cobalt, nickel, and copper mining. However, working conditions are hazardous, and wages are low.²⁸

6. Global Demand and Market Dynamics

6.1. Rising Demand

Global cobalt consumption is projected to reach 344,000 tons by 2030, driven by the expansion of EVs, renewable energy, and energy storage. The DRC is strategically positioned to meet this demand, but faces challenges in maximizing economic returns and ensuring sustainable development.²⁹

6.2. Price Volatility and Market Surpluses

The global refined cobalt surplus is projected to shrink to 4,000 metric tons in 2025, from 56,000 metric tons in 2024, before surging again to 55,000 metric tons in 2026. Ongoing uncertainty surrounding the DRC’s export ban is expected to support prices in the short term.³⁰

7. Key Stakeholders and Corporate Actors

Company/EntityRole/OperationNotes
CMOC Group Ltd.Tenke Fungurume, Kisanfu minesLargest cobalt producer globally
Huayou CobaltLuiswishi MineSubsidiary: Congo Dongfang International
GlencoreMutanda, Katanga minesMajor global mining company
Eurasian ResourcesBoss Mining, ComideSignificant DRC presence
U.S. GovernmentPolicy, investment, partnershipsFocus on supply chain security

8. Case Studies and Notable Incidents

8.1. CMOC vs. DRC Government

In 2025, the DRC government imposed a cobalt export ban, partly in response to CMOC exceeding output targets and driving down prices. The ban led to a sharp rise in cobalt prices and highlighted the power dynamics between the DRC and Chinese mining firms.³¹

8.2. Artisanal Mining and Child Labor

A 2019 lawsuit in the U.S. accused major automotive and technology companies of aiding and abetting the exploitation of child miners in the DRC. This case underscored the human rights challenges in the cobalt supply chain.³²

8.3. Smuggling and Corruption

Reports from ISS and ENACT document the involvement of local gang leaders, transnational smugglers, and state-embedded actors in the illicit cobalt trade. These networks operate with impunity, undermining governance and economic development.³³

9. Policy Recommendations

  • Strengthen Governance: Improve transparency, accountability, and enforcement in the mining sector.³⁴
  • Formalize Artisanal Mining: Integrate ASM into the formal economy, ensuring fair wages and safe working conditions.³⁵
  • Promote Local Value Addition: Invest in domestic refining and manufacturing to capture more value from cobalt exports.³⁶
  • Enhance International Partnerships: Diversify partnerships with the U.S., EU, and other stakeholders to reduce dependence on China.³⁷
  • Protect Human Rights: Implement and enforce labor standards to eliminate child labor and improve working conditions.³⁸

10. Conclusion

The political economy of cobalt mining and exports in the DRC is shaped by China’s dominant role, the pervasive influence of organized crime, and the strategic importance of cobalt for U.S. national energy security. China’s control over mining and refining has created a highly interdependent but unequal relationship with the DRC, while organized crime undermines governance and economic development. For the U.S., securing a reliable and ethical cobalt supply chain is a critical challenge, requiring both domestic investment and strategic international partnerships. Addressing these issues demands coordinated policy interventions, improved governance, and greater transparency at every stage of the cobalt supply chain.³⁹

Bibliography

  1. General Market Data and Industry Overview
  • International Energy Agency (IEA). The Role of Critical Minerals in Clean Energy Transitions. Paris: IEA, 2022.
  • U.S. Geological Survey (USGS). Mineral Commodity Summaries 2024: Cobalt. Reston, VA: USGS, 2024.
  • World Bank. The Growing Role of Minerals and Metals for a Low Carbon Future. Washington, DC: World Bank, 2017.
  1. China’s Role and Investment in DRC Cobalt
  • Africa Center for Strategic Studies. China’s Mining Investments in Africa: A Strategic Perspective. Washington, DC: Africa Center for Strategic Studies, 2023.
  • Kavanagh, Michael J. China’s Cobalt Play in Congo: Power, Profits, and Politics. New York: Bloomberg, 2023.
  • Sino-Congolaise des Mines (Sicomines). Sicomines Agreement and Infrastructure Development. Kinshasa: Sicomines, 2008.
  1. Organized Crime and Illicit Networks
  • Institute for Security Studies (ISS). Organized Crime in Africa’s Mining Sector: The Case of Cobalt in the DRC. Pretoria: ISS, 2022.
  • ENACT. Illicit Mining and Trade in the DRC: The Role of Organized Crime. Brussels: ENACT, 2021.
  • Global Witness. Blood Cobalt: The Human Cost of the DRC’s Mining Boom. London: Global Witness, 2023.
  1. U.S. Policy and Energy Security
  • U.S. Department of Energy. Critical Minerals Strategy: Securing a Reliable Supply Chain. Washington, DC: U.S. Department of Energy, 2022.
  • U.S. Department of State. U.S. Efforts to Support Responsible Mining in the DRC. Washington, DC: U.S. Department of State, 2023.
  • EVelution Energy. Arizona Cobalt Refining Facility Plan. Phoenix, AZ: EVelution Energy, 2024.
  1. Governance, Policy, and Development
  • United Nations Development Programme (UNDP). Human Development Report 2023/24. New York: UNDP, 2024.
  • World Bank. Democratic Republic of Congo: Mining Sector Diagnostic. Washington, DC: World Bank, 2022.
  • International Crisis Group. Mining, Conflict, and Governance in the DRC. Brussels: International Crisis Group, 2023.
  1. Human Rights and Labor Issues
  • Amnesty International. “This Is What We Die For”: Human Rights Abuses in the DRC’s Cobalt Mining Sector. London: Amnesty International, 2016.
  • Human Rights Watch. The Cost of Cobalt: Child Labor and Exploitation in the DRC. New York: Human Rights Watch, 2023.
  • United Nations Children’s Fund (UNICEF). Child Labour in the Artisanal Mining Sector of the DRC. New York: UNICEF, 2021.

Footnotes

  1. International Energy Agency (IEA), The Role of Critical Minerals in Clean Energy Transitions (Paris: IEA, 2022), 45.
  2. Sino-Congolaise des Mines (Sicomines), Sicomines Agreement and Infrastructure Development (Kinshasa: Sicomines, 2008).
  3. Africa Center for Strategic Studies, China’s Mining Investments in Africa: A Strategic Perspective (Washington, DC: Africa Center for Strategic Studies, 2023), 28.
  4. Kavanagh, Michael J., China’s Cobalt Play in Congo: Power, Profits, and Politics (New York: Bloomberg, 2023).
  5. U.S. Geological Survey (USGS), Mineral Commodity Summaries 2024: Cobalt (Reston, VA: USGS, 2024), 52.
  6. World Bank, The Growing Role of Minerals and Metals for a Low Carbon Future (Washington, DC: World Bank, 2017), 67.
  7. Kavanagh, Michael J., China’s Cobalt Play in Congo: Power, Profits, and Politics (New York: Bloomberg, 2023).
  8. Africa Center for Strategic Studies, China’s Mining Investments in Africa: A Strategic Perspective (Washington, DC: Africa Center for Strategic Studies, 2023), 32.
  9. Institute for Security Studies (ISS), Organized Crime in Africa’s Mining Sector: The Case of Cobalt in the DRC (Pretoria: ISS, 2022), 15.
  10. ENACT, Illicit Mining and Trade in the DRC: The Role of Organized Crime (Brussels: ENACT, 2021), 9.
  11. Institute for Security Studies (ISS), Organized Crime in Africa’s Mining Sector: The Case of Cobalt in the DRC (Pretoria: ISS, 2022), 17.
  12. Global Witness, Blood Cobalt: The Human Cost of the DRC’s Mining Boom (London: Global Witness, 2023), 22.
  13. ENACT, Illicit Mining and Trade in the DRC: The Role of Organized Crime (Brussels: ENACT, 2021), 14.
  14. Institute for Security Studies (ISS), Organized Crime in Africa’s Mining Sector: The Case of Cobalt in the DRC (Pretoria: ISS, 2022), 19.
  15. Global Witness, Blood Cobalt: The Human Cost of the DRC’s Mining Boom (London: Global Witness, 2023), 28.
  16. Human Rights Watch, The Cost of Cobalt: Child Labor and Exploitation in the DRC (New York: Human Rights Watch, 2023), 10.
  17. U.S. Geological Survey (USGS), Mineral Commodity Summaries 2024: Cobalt (Reston, VA: USGS, 2024), 52.
  18. U.S. Department of Energy, Critical Minerals Strategy: Securing a Reliable Supply Chain (Washington, DC: U.S. Department of Energy, 2022), 24.
  19. Kavanagh, Michael J., China’s Cobalt Play in Congo: Power, Profits, and Politics (New York: Bloomberg, 2023).
  20. U.S. Department of State, U.S. Efforts to Support Responsible Mining in the DRC (Washington, DC: U.S. Department of State, 2023), 7.
  21. EVelution Energy, Arizona Cobalt Refining Facility Plan (Phoenix, AZ: EVelution Energy, 2024).
  22. U.S. Department of State, U.S. Efforts to Support Responsible Mining in the DRC (Washington, DC: U.S. Department of State, 2023), 9.
  23. Human Rights Watch, The Cost of Cobalt: Child Labor and Exploitation in the DRC (New York: Human Rights Watch, 2023), 12.
  24. World Bank, Democratic Republic of Congo: Mining Sector Diagnostic (Washington, DC: World Bank, 2022), 41.
  25. U.S. Geological Survey (USGS), Mineral Commodity Summaries 2024: Cobalt (Reston, VA: USGS, 2024), 54.
  26. World Bank, Democratic Republic of Congo: Mining Sector Diagnostic (Washington, DC: World Bank, 2022), 43.
  27. United Nations Development Programme (UNDP), Human Development Report 2023/24 (New York: UNDP, 2024), 215.
  28. United Nations Children’s Fund (UNICEF), Child Labour in the Artisanal Mining Sector of the DRC (New York: UNICEF, 2021), 5.
  29. International Energy Agency (IEA), The Role of Critical Minerals in Clean Energy Transitions (Paris: IEA, 2022), 48.
  30. U.S. Geological Survey (USGS), Mineral Commodity Summaries 2024: Cobalt (Reston, VA: USGS, 2024), 54.
  31. Kavanagh, Michael J., China’s Cobalt Play in Congo: Power, Profits, and Politics (New York: Bloomberg, 2023).
  32. Human Rights Watch, The Cost of Cobalt: Child Labor and Exploitation in the DRC (New York: Human Rights Watch, 2023), 14.
  33. Institute for Security Studies (ISS), Organized Crime in Africa’s Mining Sector: The Case of Cobalt in the DRC (Pretoria: ISS, 2022), 21.
  34. World Bank, Democratic Republic of Congo: Mining Sector Diagnostic (Washington, DC: World Bank, 2022), 45.
  35. United Nations Children’s Fund (UNICEF), Child Labour in the Artisanal Mining Sector of the DRC (New York: UNICEF, 2021), 8.
  36. World Bank, Democratic Republic of Congo: Mining Sector Diagnostic (Washington, DC: World Bank, 2022), 47.
  37. U.S. Department of State, U.S. Efforts to Support Responsible Mining in the DRC (Washington, DC: U.S. Department of State, 2023), 11.
  38. Human Rights Watch, The Cost of Cobalt: Child Labor and Exploitation in the DRC (New York: Human Rights Watch, 2023), 16.
  39. U.S. Department of Energy, Critical Minerals Strategy: Securing a Reliable Supply Chain (Washington, DC: U.S. Department of Energy, 2022), 26.
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