Demand for commodities such as lithium and cobalt are expected to continue to rise as electric vehicle (EV) battery manufacturers expand their production.
Batteries for EVs contain a combination of commodities including lithium, cobalt, graphite and nickel.
According to Christopher Thomas, an economist at FocusEconomics, this is good news for countries like the Democratic Republic of the Congo (DRC) where two thirds of the world’s cobalt output originates.
“Booming demand from the automotive sector has pushed up prices and, with it, production. Cobalt prices are currently riding near a one-decade high – and are expected to continue rising over the next few years – but have not yet climbed high enough to induce long-term infrastructure investment among all producers,” he told FTW. “Supply, on the other hand, appears far more precarious, as political stability in the DRC has long been elusive and this year’s elections could bring about bloodshed and even greater uncertainty. The re-election of long-time president Joseph Kabila would certainly ensure some stability and likely safeguard the continued output of the country’s mines.”
However, his victory, said Thomas, let alone his participation in the election, was still far from certain.
“Kabila aside, the roundup of candidates currently eyeing the country’s top job could prompt instability given the many unknowns of a new regime in the long shadow of two decades of Kabila family rule.”
