The cobalt found in a 2026 electric crossover’s battery did not originate in a Munich design studio or on a Shanghai factory floor. It began somewhere outside of Kolwezi in the southern region of the Democratic Republic of the Congo, where men with sacks slung over their shoulders descend hand-dug shafts while wearing plastic sandals. Although most car buyers never look, you can find videos of it online. The industry seems to favor that approach.
The DRC produces about 70% of the world’s cobalt, and that percentage has hardly changed in recent years. Who is in charge of what happens next has changed. Approximately three-quarters of the world’s supply is refined in China, and over the past ten years, Chinese companies, the most well-known of which is CMOC Group Limited, have invested in, partnered with, or otherwise integrated themselves into the nation’s mining industry. Up to half of the world’s cobalt currently passes through CMOC’s hands, according to a suggestion made earlier this year by the Environmental Investigation Agency. That figure is disputed. It’s not the trend.
| Information | Detail |
|---|---|
| Topic Focus | Cobalt supply chain, EV batteries, geopolitics |
| Primary Country of Extraction | Democratic Republic of Congo |
| Share of Global Cobalt Mine Output | Approximately 70 percent |
| Estimated Global Cobalt Reserves Held by DRC | Around 52 percent |
| Share of Global Cobalt Refining Done in China | Roughly 75 percent |
| Share of Global Lithium-ion Battery Production Controlled by China | Over 75 percent |
| Cobalt Going Into EV Batteries | About 43 percent of consumption |
| Major Chinese Operator in DRC | CMOC Group Limited |
| Reported Share of Global Cobalt Through CMOC | Around 50 percent |
| Year of Latest DRC Export Quota Tightening | 2026 |
| Key Ethical Concerns | Artisanal mining, child labor, environmental contamination |
| Alternative Chemistries Emerging | Sodium-ion, solid-state batteries |
| Strategic Classification in US, EU | Critical mineral |
It’s difficult to ignore how silently this occurred. Beijing was signing contracts while Western capitals discussed gigafactories and climate goals. These contracts are now leverage in 2026. Reports on the cobalt market are already reflecting the DRC’s tightening of its export quotas this year in an effort to drive up prices and capture more value domestically. The buyers’ level of patience, which is rarely present in any commodity market, will determine whether or not that strategy succeeds.
Cobalt is important because it performs a challenging function inside a battery. In the high-energy formats that automakers prefer for longer-range vehicles, it prevents lithium-ion cells from overheating. Currently, 43% of the world’s cobalt is used in EV batteries, and as Ford, Hyundai, and BYD compete to release new models, this percentage continues to rise. Cobalt is still stubbornly required for the time being, but there are alternatives: solid-state cells continue to be promised, and sodium-ion chemistries are improving.
What gets paid to extract it is the issue. Independent investigations have shown that entire villages were uprooted for industrial concessions, rivers near processing sites were contaminated, and children were employed in informal pits. Businesses have pledged blockchain ledgers, traceability initiatives, and audits. Some of these initiatives appear sincere. Some see it as the business equivalent of placing a recycling bin in a parking lot.
The contradiction is unsettling when observing this from the outside. The same car that is promoted as a step toward a cleaner world is actually part of a supply chain that frequently contaminates its source. Given that cobalt-light chemistries are gaining traction and recycling capacity in China and Europe is expanding more quickly than anticipated, investors appear to still think the math is sound. The next ten years might be different. Another possibility is that the dependency just changes in form.
Instead of competing with China on cells, Pakistan, Indonesia, and portions of Eastern Europe are now establishing themselves as midstream players, concentrating on battery assembly and recycling. That makes sense. It’s unclear if it alters the fundamental picture—Congo digs, China refines, the rest of the world drives. For the time being, every commute in a 2026 EV is also, in a tiny way, a vote in a geopolitical contest that the majority of drivers never consented to participate in.
