Dire consequence if DRC continues cobalt squeeze says China

Dire consequence if DRC continues cobalt squeeze says China   

The DRC’s ongoing cobalt ban could have dire consequences for the cobalt market.

China’s CMOC Group, the world’s leading cobalt producer, has warned that the Democratic Republic of the Congo’s (DRC’s) continued ban on the export of cobalt will push automakers towards manufacturing cobalt-free lithium iron phosphate.

The DRC is the world’s leading producer of cobalt. Swiss based Glencore, a large producer of cobalt in the DRC, supports the ban and export quotas to manage supply.

In August last year Glencore announced that it has stopped stockpiling cobalt saying that the market will remain in surplus for at least another 20 months.

Building cobalt free batteries  

While the DRC government is evaluating the four-month ban, CMOC’s Vice President Kenny Ives earlier this week warned that continued restrictions could push automakers toward cobalt-free lithium iron phosphate (LFP) batteries (source: Reuters).

With advancements in material science and battery technology, LFP batteries are increasingly seen as a sustainable alternative to traditional lithium-ion batteries that rely on cobalt.

To produce LFP batteries, lithium iron phosphate is used as cathode material, eliminating the use in cobalt altogether.

China is by far the largest producer of LFP batteries, with the largest share of global manufacturing capacity and significant technological advancements in this field.

Moreover, China has strong control over the supply chain for the raw materials needed for LFP batteries, such as lithium, phosphate, and iron. Many of these materials are either sourced domestically or through partnerships with countries that supply these minerals.

But its not only China that are perfecting the manufacturing of cobalt free batteries. In the USA companies like Elon Musk’s Tesla (through partnerships with Panasonic and other suppliers) and new entrants such as QuantumScape and Lilac Solutions are working on increasing their production of lithium-based batteries, including LFP variations.

In Europe, Germany, for example, is also focused on boosting the development of LFP battery technologies.

There are many advantages of LFP batteries. Iron and phosphate are more abundant and less costly than cobalt and in addition, LFP batteries have a longer life cycle compared to cobalt-based lithium-ion batteries.

WhyAfrica will continue following this developing story over the next few months.

To read more about the DRC, African exploration and mining, and the sustainable use and responsible development of Africa’s natural resources, visit the WhyAfrica website, your one-stop shop for on the ground information and business intelligence about Africa.

Dire consequence if DRC continues cobalt squeeze says China