Europe’s Dependency on China for Cobalt Supply
The Democratic Republic of Congo (DRC) plays a crucial role in the global cobalt supply chain, accounting for two-thirds of the world’s cobalt production. However, a significant portion of the DRC’s cobalt is exported to China, which dominates 75% of the global cobalt processing industry. Cobalt, a vital component in battery manufacturing, is essential for Europe’s energy transition objectives. Despite concerns over extraction practices, Europe finds itself reliant on China for cobalt supply, creating a dilemma for policymakers.
European leaders, such as MEP Marie-Pierre Vedrenne, have been advocating for sustainable extraction methods to address issues like child labor and exploitation in cobalt mining. However, China’s stronghold on cobalt refining and value addition limits Europe’s ability to enforce its sustainability standards. While initiatives like the EU’s Global Gateway Initiative and the Lobito Corridor infrastructure project aim to strengthen Europe’s presence in the region, China’s established partnerships and control over DRC’s cobalt exports continue to give it a competitive edge.
As Europe grapples with its dependence on China for cobalt supply, the need for diversification and sustainable sourcing practices becomes increasingly apparent. Finding a balance between securing a stable cobalt supply chain and upholding ethical standards in mining operations remains a pressing challenge for the continent.
SOURCE: DW
