Africa's cobalt powerhouse DRC moves to triple lithium mining royalties in strategic minerals overhaul

The Democratic Republic of Congo (DRC), Africa's largest producer of cobalt and one of the world's most important sources of critical minerals, is moving to significantly increase its share of revenues from the global energy transition.

• The DRC has declared lithium, tantalum, niobium, tungsten, uranium, and rare earth elements as strategic minerals, significantly raising royalties on their extraction.
• Mining companies will now face a 10% royalty rate which is nearly triple the previous 3.5%, for strategic minerals, increasing operational costs.
• The policy aims to boost the DRC government's share of revenue from critical minerals central to global energy transition technologies.
• The move bolsters DRC's leverage in negotiations with global partners and attracts attention from Western nations seeking stable mineral supply chains.

The DRC government has approved the inclusion of lithium, tantalum, niobium, tungsten, uranium and rare earth elements on its list of strategic minerals, paving the way for a sharp increase in royalty payments by mining companies operating in the sector.

Under the DRC's mining code, strategic minerals attract a royalty rate of 10%, nearly three times higher than the standard 3.5% rate applied to other minerals.

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The change means lithium miners could soon face substantially higher costs as Kinshasa seeks a larger share of profits from minerals that are increasingly vital to electric vehicles, batteries and advanced technologies.

The decision was approved by the country's council of ministers and announced through a video posted on the mines ministry's X account.

The move reinforces the DRC's growing influence in the global critical minerals market. The Central African nation produces more than 70% of the world's cobalt, a key component in rechargeable batteries used in electric vehicles, smartphones and energy storage systems.

The country also possesses significant reserves of copper, lithium, tin, tantalum and rare earth minerals, making it one of the most strategically important mining jurisdictions in the world.

DRC strengthens leverage in global minerals race

The royalty increase comes as the DRC deepens engagement with the United States and other Western partners seeking to secure critical mineral supply chains amid growing competition with China.

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In recent months, Kinshasa has explored a minerals-for-security partnership with Washington, leveraging its vast resource wealth as part of broader efforts to attract investment and strengthen regional stability.

The United States has also backed initiatives aimed at developing mineral processing and battery value chains in Africa, reducing reliance on exports of raw materials.

The proposed policy could also have significant implications for major mining companies operating in the Democratic Republic of Congo, particularly those with interests in lithium and other critical minerals.

These include Australia's AVZ Minerals, which is developing the massive Manono lithium project, and China's Zijin Mining, a growing player in the country's battery metals sector.

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Other major foreign investors that could be affected include China's CMOC Group, Switzerland-based Glencore, and Canada's Ivanhoe Mines.

Higher royalty payments could increase costs for these firms while allowing the Congolese government to capture a larger share of revenues from minerals that are increasingly vital to the global energy transition.

By redesignating lithium and several other metals as strategic minerals, the DRC is signaling its intention to exercise greater control over resources that are becoming increasingly central to the global economy.