DRC plans to triple lithium royalties in Africa’s critical minerals push

DRC lithium royalties increase signals a major shift in Congo mining policy as the nation targets higher returns from critical minerals demand.

Timilehin Adejumobi
Timilehin Adejumobi
Lithium

The Democratic Republic of Congo is positioning itself to capture a larger share of the global clean-energy economy after approving plans to classify lithium and several other minerals as strategic resources, a move that could nearly triple royalty payments for mining companies operating in the country.

The decision, approved by the Council of Ministers, adds lithium, tantalum, niobium, tungsten, uranium and rare earth elements to the country’s strategic minerals list. Under Congo’s mining code, strategic minerals are subject to a 10% royalty rate, significantly higher than the standard 3.5% levy applied to most minerals.

The policy marks one of the most significant reforms to the country’s mining sector in recent years and reflects a broader trend among resource-rich nations seeking greater returns from soaring global demand for battery metals and clean-energy materials.

Critical minerals gain strategic importance

The move comes as governments and manufacturers worldwide race to secure reliable supplies of minerals essential for electric vehicles, renewable energy infrastructure and advanced technologies.

Lithium and rare earth elements have become increasingly valuable as automakers accelerate EV production and countries invest heavily in energy-transition projects. By raising royalties, Congo aims to increase state revenues while strengthening its negotiating position with global investors and trading partners.

The policy could reshape the economics of several mining projects and influence future investment decisions across Central Africa’s fast-growing critical minerals sector.

Mining remains the backbone of Congo’s economy

Congo already holds a dominant position in global mineral supply chains. The country produces more than 70% of the world’s cobalt, a key ingredient in lithium-ion batteries used in electric vehicles, smartphones and large-scale energy storage systems.

With an estimated 4 million to 6 million tonnes of cobalt reserves, the nation controls nearly half of known global reserves, making it indispensable to manufacturers seeking secure access to battery materials.

Mining contributes more than one-fifth of Congo’s gross domestic product and remains the country’s largest source of export earnings. While industrial operations, many backed by Chinese investment, account for most production, artisanal miners continue to play a significant role in supplying global markets.

As demand for critical minerals accelerates, Congo is increasingly leveraging its vast resource base to secure a greater share of the wealth generated by the global energy transition.

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form]

Share This Article