Cobalt Market Reacts Cautiously to Cobalt Holdings’ 6,000t Purchase Plan

Cobalt Holdings

Glencore-backed stockpile plan reflects supply tensions, DRC export ban uncertainty

Cobalt Holdings plans to acquire 6,000 tonnes of cobalt metal from Glencore, following its $230 million listing on the London Stock Exchange (LSE). The purchase is part of a six-year supply agreement worth $1 billion and would represent a volume just shy of the entire annual spot market, estimated at 7,000–10,000 tonnes.

The acquisition, expected to be priced at a 4.8% discount to the May 9 Fastmarkets cobalt mid-price, signals a strategic stockpiling move as cobalt prices rise amid supply risks from the Democratic Republic of Congo (DRC).

DRC Export Ban Fuels Market Uncertainty

The DRC—world’s top cobalt exporter—banned cobalt exports in February 2025, sending prices up by over 50%. With the ban initially scheduled for four months, market participants are awaiting policy clarity, particularly at the Cobalt Institute conference in Singapore (May 13–15).

“There is no need for a knee-jerk reaction,” said one trader. “We need to see what the DRC government decides.”

Others acknowledged the price-supportive nature of the Cobalt Holdings purchase, expecting it to reduce excess supply and add liquidity to the market.

Cobalt Holdings Positions for Long-Term Upside

CEO Jake Greenberg said the company aims to strategically stockpile while cobalt prices remain below historical averages. Fastmarkets data shows the current standard-grade cobalt range at $15.25–16.50/lb, versus a historical average low of $18.15/lb since 1992.

The company plans to buy LME-approved cobalt brands in Rotterdam and Antwerp, ensuring quality and liquidity. Additional cobalt will be sourced from US-based Anchorage, with a 1,500-tonne delivery scheduled for 2031. Anchorage is also investing $23 million for a 9.5% stake.

Strategic Moves Amid Oversupply and EV Growth

Despite short-term headwinds like oversupply from CMOC-Kisanfu (China), analysts see long-term bullish potential driven by EV battery demand. “It’s a pure cobalt play that they believe is historically undervalued,” said one trader.

With Glencore holding a 10% stake in Cobalt Holdings, this initiative marks a critical supply-chain positioning move amid geopolitical uncertainties and energy transition momentum.