COBALT Supply Chain Act

Key Points

• The bill creates a legal assumption that any goods containing cobalt refined in China were made using child or forced labor in the Congo. Importers would be blocked from bringing these goods into the U.S. unless they can prove otherwise with strong evidence.
• Cobalt is a critical material used in lithium-ion batteries for electric vehicles, smartphones, and laptops. Demand is expected to surge dramatically in the coming decades, making supply chain issues increasingly important.
• The Congo produces roughly 70% of the world's cobalt, and 15 of its 19 cobalt mines are owned or financed by Chinese companies. An estimated 40,000 children work in artisanal mining operations there.
• Companies can get an exception only by providing "clear and convincing evidence" that their goods do not contain cobalt refined in China. Customs must publicly report any exception it grants within 30 days.
• The federal government would need to certify each year that the vehicles it buys are free of parts made with child or forced labor, though the Department of Defense is exempt from this requirement.
• A task force would create and maintain lists of companies that refine or mine cobalt in China and those that import covered goods into the U.S. The enforcement strategy has a sunset of 8 years or whenever forced labor in Congo's mining industry ends.

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