Eurasian Resources Group said on Monday it cut cobalt hydroxide production in the Democratic Republic of Congo in 2025 due to an export ban and quota system. The company plans only a partial recovery this year. The DRC, the world’s largest producer of cobalt, imposed a months-long export ban early in 2025 before moving to a quota regime. The country faced oversupply and a price slump. It also established a strategic reserve for cobalt.
ERG deliberately reduced Congo cobalt hydroxide output by 70%, to 5,700 metric tons in 2025 from 19,000 tons in 2024. The Luxembourg-headquartered group told Reuters it plans to double cobalt production in 2026 from 2025 levels. ERG’s share of the DRC’s export quota for 2026 is 12,325 tons of cobalt metal. This figure includes the unused portion from the fourth quarter of 2025. ERG competes with miners including China’s CMOC and Glencore, the world’s top cobalt producers in the DRC.
Export Ban and Quota System Reshape Market
The DRC’s intervention in the cobalt market represented an unprecedented move. The country produces roughly 70% of the world’s cobalt. Therefore, its export policies have global implications. The months-long export ban halted shipments entirely. The subsequent quota system limits exports to managed levels. Together, these measures aim to support depressed cobalt prices.
Access World data shows Congo shipped 48,800 metric tons of cobalt in the first quarter of this year. That figure compares with 123,000 tons in the same period of 2025, when exporters frontloaded shipments ahead of the export ban. The sharp decline in first-quarter exports reflects the new quota regime. Congo cobalt hydroxide output has thus become a closely watched metric for battery metal markets.
ERG’s Broader Operations and Outlook
ERG, in which the Kazakh government owns a 40% stake, produces ferrochrome, aluminum, and iron ore in Kazakhstan. Its Central Asian business makes up most of its core earnings. However, its African business, dominated by copper and cobalt production in the DRC, accounted for 24% of ERG’s $2.1 billion EBITDA last year. That business expanded its contribution due to cost optimization and higher production.
In the DRC, ERG’s saleable copper concentrate production rose 25% to 47,600 tons in 2025. An open-pit expansion project at the Frontier mine drove this increase. ERG’s total copper production is expected to rise this year by 9% to 162,000 tons. Therefore, while Congo cobalt hydroxide output remains constrained, copper production continues to grow.
The partial recovery in cobalt output reflects ERG’s cautious approach. Doubling production from 2025 levels sounds dramatic but starts from a very low base. Even with the planned increase, Congo cobalt hydroxide output will remain well below 2024 levels. The quota system limits how much any producer can export. ERG must operate within its allocated 12,325-ton quota for 2026.
Cobalt prices have stabilized since the DRC introduced export controls. However, demand for electric vehicle batteries has softened in some markets. Automakers face their own challenges with supply chains and consumer adoption. Therefore, the long-term outlook for Congo cobalt hydroxide output remains uncertain. ERG and its competitors will watch market conditions closely before committing to further production increases.
The DRC government has signaled its intention to maintain some form of export management. The strategic reserve gives the state additional tools to influence prices. For now, ERG expects limited recovery in Congo cobalt hydroxide output. The company will focus on cost efficiency and operational reliability. Shareholders will learn more when ERG reports its full quarterly results later this year.
