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Copper and cobalt miners in the Democratic Republic of Congo (DRC) are reducing their use of chemicals amid supply disruptions caused by the ongoing war in Iran, according to sources. The conflict has disrupted the flow of critical chemicals used in mining processes, forcing producers to adapt by sourcing alternatives or scaling back operations. This development comes as global demand for cobalt and copper—key components in electric vehicles (EVs) and renewable energy infrastructure—remains strong, creating a potential supply-demand imbalance.
The reduction in chemical availability could lead to production delays and higher costs for mining companies, which may be passed on to consumers. For traders, this adds another layer of volatility to already fluctuating commodity markets, particularly for copper and cobalt, which are sensitive to geopolitical tensions. The DRC produces over 70% of the world’s cobalt, making it a critical node in the global supply chain for EVs and electronics.
Investors should monitor the duration of the Iran conflict and its impact on chemical logistics, as prolonged disruptions could further strain markets. Additionally, the search for alternative suppliers or chemical substitutes may influence long-term production strategies. Traders might also watch for policy responses from governments or mining firms to mitigate supply risks.
