Global commodities trader Glencore has tapped into cobalt inventories held on a Chinese exchange to meet supply commitments to electric vehicle battery manufacturers, as tightening global supply continues to strain the market, according to Reuters.
The company has reportedly drawn significant volumes from the Wuxi exchange in China, stepping in after its existing stockpiles proved insufficient to fulfill contractual obligations to Chinese clients. The move highlights growing pressure in the cobalt market, driven by supply disruptions and surging demand from the EV sector.
Much of the supply strain stems from developments in the Democratic Republic of Congo, which accounts for roughly 70 percent of global cobalt production. The country introduced export restrictions and quotas after suspending shipments in 2025 to stabilize prices, limiting the volume available to global buyers.
As a result, cobalt prices have surged sharply, rising by around 160 percent since early 2025, with inventories on Chinese exchanges declining significantly amid increased withdrawals. Analysts say the situation underscores the fragility of global supply chains for critical minerals, particularly those essential for electric vehicles and energy transition technologies.
