Market Notes · Critical Minerals

Cobalt Sourcing and the DRC Question

The Democratic Republic of the Congo supplies most of the world’s cobalt. Battery chemistry shifts and ESG concerns have changed how investors think about the market.

Key takeaways
  • The Democratic Republic of the Congo supplies the majority of mined cobalt.
  • Battery cathode chemistries are gradually reducing cobalt intensity per kilowatt hour.
  • ESG concerns around artisanal mining have created premium markets for traceable cobalt.

Why the DRC dominates cobalt mining

The Democratic Republic of the Congo holds the largest known cobalt-bearing copper sulfide deposits and produces the majority of world mine supply. Most DRC cobalt is a byproduct of copper mining, with both industrial-scale and artisanal small-scale mining contributing.

Refining concentration

China has the largest share of cobalt refining capacity. As a result, even non-DRC mined cobalt typically transits Chinese refineries before reaching battery makers. This adds a second layer of concentration to the cobalt supply chain.

Battery chemistry trends

EV cathode chemistries have evolved to reduce cobalt content. Lithium iron phosphate (LFP) cathodes contain no cobalt. High-nickel chemistries (NMC 811, NCA) reduce cobalt per kilowatt hour relative to earlier formulations. These shifts have moderated cobalt demand growth relative to overall battery demand.

ESG and traceability

Artisanal small-scale mining in the DRC has been associated with child labor and unsafe conditions. Battery makers and automakers have responded with traceability programs, certification schemes, and preferential sourcing from industrial mines. This has created a small but growing market for traceable cobalt at a premium.

Investment implications

Non-DRC cobalt projects (in Australia, Canada, the Philippines, and Indonesia) attract strategic interest from auto OEMs and Western governments. Demand growth depends on the chemistry mix as much as on EV unit volumes.

Frequently asked questions

Is cobalt being designed out of EV batteries?
Cobalt content per kilowatt hour is falling but cobalt has not been eliminated from major chemistries. LFP cathodes contain no cobalt. High-nickel chemistries reduce but do not eliminate cobalt. The overall direction is lower cobalt intensity rather than zero.
Where is cobalt refined?
China hosts the largest share of cobalt refining capacity, followed by Finland, Japan, and several smaller producers. Most mined cobalt globally passes through a Chinese refiner.
Is cobalt a critical mineral?
Yes. Cobalt appears on the critical mineral lists of Canada, the United States, and the European Union.
Sources

Concentration and chemistry trends are documented by the US Geological Survey, the International Energy Agency, and the Cobalt Institute.

Disclaimer. This article is published by Bellmare Capital for information and educational purposes only. It is not investment advice and is not a recommendation, offer, or solicitation to buy or sell any security. Bellmare Capital is not a registered investment advisor or dealer, and any companies mentioned are referenced for discussion only, not as an endorsement. The information comes from public filings and third-party sources believed reliable but is not guaranteed to be accurate or current, and any forward-looking views may differ materially from actual results. Investing carries risk, and small-cap and junior resource companies in particular are speculative and volatile, with possible loss of your entire investment, so do your own research and consult a licensed advisor before acting.