Glencore seals $115 million cobalt deal as U.S. eyes supply shift from China

At a time when governments are reshaping supply chains for critical minerals, Glencore has moved to secure a sizable cobalt purchase, agreeing to buy nearly 2,000 metric tons of the battery metal in a deal valued at about $115 million. The material, sourced from Israeli metals trader Rami Weisfisch, is expected to be shipped to the United States, where it is likely to support a planned national stockpile tied to defense and military needs.

Glencore cobalt deal aligns with U.S. policy shift

The transaction places the company, led by Chief Executive Gary Nagle, at the center of a broader shift in U.S. policy. Under President Donald Trump, Washington has stepped up efforts to secure reliable access to minerals such as cobalt, reflecting concerns about dependence on China. The country remains the dominant force in global supply and processing, and its tighter controls—ranging from export restrictions to regulatory changes—have altered how these materials move through global markets.

For Glencore, the agreement—reached late last year—will run over 12 months in 2026 and is linked to benchmark pricing. The cobalt, which Weisfisch acquired in 2015 and stored across Europe and the United States, marks the end of his long presence in the market, according to people familiar with the matter. Those sources said the material is expected to feed into a U.S.-backed stockpiling effort known as Project Vault, supported by $10 billion in seed funding from the U.S. Export-Import Bank and an additional $2 billion in private capital. Nagle said in a recent statement that Glencore plans to take part.

Congo export curbs tighten cobalt supply

The deal follows a disrupted procurement effort by the Defense Logistics Agency, which scrapped a cobalt tender in October after multiple revisions. Announced on Aug. 19, the tender had signaled urgency in Washington’s push to build reserves. Since then, prices have risen to about $26 a pound, or $57,320 a ton, up roughly 160 percent from February 2025, driven by tighter supply and stronger demand. A key factor has been policy moves in the Democratic Republic of Congo, which halted exports from late February to mid-October before introducing quotas, tightening global supply.

Those restrictions have also affected Glencore’s operations. It produced 33,500 tonnes of cobalt in the Congo last year, down 5 percent from 2024, as shipments were held back during the export ban. While quotas replaced the restrictions in October, exports did not resume before year-end due to approval delays. Authorities have since allowed unused 2025 quotas to be carried into 2026 through March 31, offering some relief, though limits remain in place.

Copper target lifts long-term production visibility

Glencore now expects it will export up to 22,800 tonnes of cobalt in 2026, including carried-over volumes, compared with a projected 18,800 tonnes in 2027. Both figures fall short of the combined capacity of its Katanga and Mutanda mines, leaving the company with excess supply that may need to be stored until conditions improve.

In response, Glencore has begun to adjust its focus. In January, the company said it would place greater emphasis on copper production in the Congo in 2026, reflecting both regulatory limits on cobalt and changes in market pricing. That approach gained further support in February, when the group finalized a land access agreement with state-owned Gécamines, securing long-term mining rights for its Kamoto Copper Company.

The agreement extends operations into the mid-2040s and provides the capacity needed for tailings storage and waste rock handling—two elements critical to sustaining output. With that in place, Glencore is targeting about 300,000 tonnes of annual copper production at Kamoto, improving visibility on future output and cash flow.