IXM, the metals trading arm of China’s CMOC Group, has declared force majeure on its cobalt supply contracts due to an ongoing export ban imposed by the Democratic Republic of Congo (DRC), the company announced on Monday.
Earlier this month, the DRC government extended the export ban for an additional three months, citing efforts to address global cobalt oversupply and stabilize falling prices.
The DRC, which produces over 80% of the world’s cobalt, first implemented the ban on February 22.
The restriction is enforced by the country’s Authority for the Regulation and Control of Strategic Mineral Substances’ Markets (ARECOMS).
It has significantly disrupted shipments from major producers, including the Tenke Fungurume and Kisanfu mines—both of which are key suppliers to IXM.
Industry analysts estimate that the ban could remove more than 100,000 tonnes of cobalt from the global market over a seven-month period, exacerbating supply chain risks for battery and electric vehicle manufacturers.
Glencore (LON: GLEN), the world’s second-largest cobalt producer, also declared force majeure shortly after the initial ban was enacted.
In a related development, Cobalt Holdings canceled its planned $230 million IPO in London, which had aimed to raise capital for purchasing discounted cobalt volumes from Glencore.
The ongoing suspension of cobalt exports from the DRC has raised alarm across global supply chains, particularly in sectors reliant on cobalt for lithium-ion batteries and renewable energy storage.
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