Prolonged cobalt export ban in the Democratic Republic of Congo
The Democratic Republic of Congo has extended its ban on cobalt exports for another three months, causing major concerns for the global electric vehicle industry. The Democratic Republic of Congo, the world’s leading producer of cobalt, is disrupting the supply chain for the key material used in electric vehicle battery technology. The move reflects a trade war that is spreading across many sectors of the cryptocurrency market and high-tech industries.
Market Reaction and Latest Policy
Congo’s mineral authority announced on Saturday that it is temporarily extending a ban on cobalt exports. Global cobalt prices have fallen to a nine-year low of just $10 a pound, putting pressure on the cost of batteries, smartphones, and other high-tech devices.
The policy is aimed at controlling supply and stabilizing prices amid excess inventories in the market. The extension, which runs until September, is aimed at keeping about 70% of the world’s cobalt production off the global market.
Internal conflict among mining groups over cobalt control strategy
In this context, major corporations such as Glencore and CMOC Group have different views. Glencore proposed the implementation of an export quota system to manage supply and demand, helping to balance prices and avoid a surplus of cobalt in the market. In contrast, CMOC Group, which is owned by China, called for the ban to be completely lifted to minimize damage to the supply chain and preserve the reputation of DRC cobalt.
This disagreement is evident in the debate over supply strategy, which has had a direct impact on electric vehicle manufacturers and investors in the cryptocurrency space. Battery manufacturers are switching to nickel or cobalt-free technology to adapt to price fluctuations and new regulations.
Impact on supply chain and cryptocurrency market
The extension of the cobalt export ban is expected to tighten global supply, pushing cobalt prices higher in the second half of the year. Investors, especially in the cryptocurrency space, should keep a close eye on these developments. The market could see some hoarding or flash sales to capitalize on the value once the policy is officially adjusted.
Battery manufacturers and supply chain operators in the cryptocurrency sector should pay close attention to policy changes, as they directly affect operating costs and long-term strategic decisions. The Congolese government is expected to make a final decision by September on whether to continue or lift the restrictions.
Control of Congo's cobalt resources is a stark reflection of the conflicting interests that have huge implications for the clean energy industry, as well as the global cryptocurrency market.
Source: https://tintucbitcoin.com/congo-gia-han-cam-cung-cap-vat-lieu-battery/
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