Chinese companies own control stakes in the world’s largest deposits.

More than half of cobalt production in the Democratic Republic of Congo (DRC) and Indonesia – which have the largest deposits of this mineral – has been under the control of Chinese companies, highlighting a troubling dominance over critical minerals that are essential for technologies like smartphones, electric vehicles (EVs), and solar power.

According to Benchmark Mineral Intelligence’s latest report (for July 2024), China’s guaranteed dominance in production of critical minerals including cobalt will remain unchallenged until 2030. By that year, the top 10 cobalt-producing countries will account for 96% of the total mined supply, with the DRC and Indonesia contributing 84% of the total. Of this, China owns more than half, through acquisitions and partnerships with the Congolese government.

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China also controls 85% of production in Papua New Guinea.

Nearly 87% of China’s cobalt consumption is dedicated to lithium-ion battery production.

China currently refines 68% of the world’s nickel, 40% of copper, 59% of lithium, and an astonishing 73% of cobalt. According to Benchmark Mineral Intelligence’s forecast, Chinese companies are expected to control 46% of the global cobalt mined supply by 2030, a 3% increase from 2023. This dominance continues to grow as China expands its global mining operations, raising increasing concerns among the U.S. and Western nations.

Other major cobalt reserves exist in Australia, Philippines, Russia, Canada, and Cuba, though none rival the DRC's scale.

Cobalt is used primarily for battery manufacturing and associated technology, supperalloys and high-temperature applications, medical and dental devices, permanent magnets, pigments and coatings, 3D printing and renewable energy solutions.

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At the London Metal Exchange last week, one ton of cobalt sold for $24,300 and the spot price has been growing since hitting its lowest point last September ($24,080) in 2024.

Cobalt price reached its highest selling point in April 2022 – more than $81,790 per ton. It will skyrocket once U.S. president-elect Donald Trump imposes 50% tariffs on Chinese goods and primary commodities as promised. Last year, China dominated the supply of critical minerals to the United States. 

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