The Status Of The DRC, The World's Largest Producer Of Cobalt, Will Be Surpassed By Indonesia

The electric vehicle industry is the largest consumer of cobalt, accounting for about 40% of total demand. The exponential growth of the electric vehicle industry is expected to double global cobalt demand to 388,000 tonnes by 2030. The Democratic Republic of the Congo (DRC) has long been the world's largest producer of cobalt, accounting for 73% of global production in 2022. Cobalt prices are down nearly 30 percent this year to $13.90 a pound, severely impacting revenues in the Democratic Republic of the Congo.

As Indonesia's cobalt production increases as a byproduct of its rapidly expanding nickel industry, the share of the Democratic Republic of the Congo is expected to fall to 57 percent by 2030, according to the Cobalt Institute. Global cobalt production totalled 198,000 mt in 2022, with the Democratic Republic of the Congo contributing approximately 145,000 mt. Indonesia now accounts for nearly 5% of global cobalt production, surpassing established producers such as Australia and the Philippines. In 2022, Indonesia's cobalt production surged from 2,700 tonnes in 2021 to nearly 9,500 tonnes, with the potential to increase tenfold by 2030.

In addition, the long-term outlook for cobalt may be challenging as the EV industry strives to reduce its use in batteries. Another reason is that cobalt mining in the Democratic Republic of the Congo faces serious labor problems. Although efforts are underway to replace cobalt in battery applications, it is expected that cobalt will remain an important raw material throughout the battery supply chain in the near future.