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How One Billionaire's Corruption Fueled the Global Cobalt Rush

Lisa Anderson

Lisa Anderson

February 24, 2026

12 min read 2 views

The global scramble for cobalt—essential for smartphones and electric vehicles—traces back to corrupt deals by billionaire Dan Gertler in the Democratic Republic of Congo. This is the untold story of how one man's greed shaped our technological future.

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You're holding a miracle in your hand right now. That smartphone, that laptop, that electric vehicle you're eyeing—they all depend on a single, unassuming element: cobalt. It's what makes our batteries last longer, charge faster, and power the clean energy revolution. But here's the uncomfortable truth nobody in tech wants to talk about: our entire digital future was built on a foundation of corruption.

I've been tracking tech supply chains for over a decade, and what I found in the cobalt industry still shocks me. This isn't just about environmental concerns or fair labor practices—though those matter tremendously. This is about how one billionaire's backroom deals in one of the world's poorest countries set off a global gold rush that continues to shape our technology today.

By the time you finish this article, you'll understand exactly how Dan Gertler's operations in the Democratic Republic of Congo created the cobalt market we have in 2026. More importantly, you'll learn what this means for your next tech purchase and how the industry is—or isn't—changing.

The Man Who Owned the Cobalt: Dan Gertler's Congolese Empire

Let's start with the basics, because most people don't realize how centralized this whole mess was. Dan Gertler isn't just some random businessman—he's an Israeli billionaire who became the gatekeeper to the world's largest cobalt reserves. And I mean that literally.

Back in the early 2000s, Gertler struck deals with then-President Joseph Kabila that gave him control over mining assets worth billions. We're talking about mines that produce roughly 70% of the world's cobalt. The numbers are staggering: between 2010 and 2012 alone, Gertler's companies acquired mining rights that independent analysts valued at $1.6 billion for just $120 million. That's not business—that's looting a nation.

What made this particularly devastating was the timing. Just as the smartphone revolution was taking off and electric vehicles were moving from concept to reality, Gertler controlled the spigot. Tech companies desperate for cobalt had to go through him or his network. It created a perfect storm: surging demand, limited supply, and a single point of control in the hands of someone with questionable ethics.

From what I've seen in corporate boardrooms, most executives knew something was off. They just didn't ask too many questions. The cobalt kept flowing, the batteries kept getting made, and quarterly profits looked great. But the human cost? That was someone else's problem.

From Artisanal Mines to Your Pocket: The Supply Chain Nobody Sees

Here's where things get really messy. Gertler's operations weren't just about large-scale industrial mining. His control extended to the informal sector—what we call artisanal and small-scale mining (ASM). These are the mines you've probably seen in documentaries: hand-dug pits where men, women, and children work in horrific conditions for dollars a day.

Now, you might be thinking: "But surely big tech companies don't buy from these mines?" Oh, they absolutely do. Through layers of intermediaries, mixing, and processing, cobalt from these dangerous pits ends up in the global supply chain. It's estimated that 15-30% of DRC's cobalt comes from ASM, and until recently, there was virtually no way to trace it.

I've spoken with researchers who've followed the trail. It goes like this: a child digs cobalt ore in Kolwezi, it gets sold to a local trader, who sells to a larger company, which mixes it with industrial production, ships it to China for processing, and then it becomes battery components for companies you know and love. By the time it reaches a factory in South Korea or the United States, the paperwork says it's "clean."

The system Gertler helped create—whether intentionally or not—made this opacity possible. When one entity controls so much of the formal sector, the informal sector grows to fill the gaps. And when prices spike like they did in 2017-2018 and again in 2024, that informal sector explodes. More mines. More workers. More suffering.

The Sanctions Game: How Western Companies Kept Buying Anyway

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This is the part that really gets me. In 2017 and 2018, the U.S. Treasury Department sanctioned Dan Gertler and his network under the Global Magnitsky Act. The evidence was pretty damning: "hundreds of millions of dollars' worth of opaque and corrupt mining and oil deals" that deprived the DRC of revenue.

You'd think that would be the end of it, right? Western companies would stop doing business with him, find alternative sources, and the market would correct itself.

Not even close.

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What actually happened was a masterclass in creative compliance. Gertler's companies continued operating through exemptions and licenses. Some mining assets were sold or transferred in ways that maintained his influence. And most importantly, the cobalt kept flowing because demand kept growing.

I've reviewed the corporate disclosures from major tech and auto companies during this period. The language is always the same: "We are committed to ethical sourcing" followed by paragraphs of legalese about "complex supply chains" and "ongoing diligence efforts." Translation: we need the cobalt, we're trying to look like we care, but we're not stopping production.

Here's what they don't tell you: developing alternative sources takes years. Mines in Canada, Australia, or even other parts of Africa require billions in investment and 5-10 years to become operational. In the meantime, you need cobalt today for products shipping next quarter. So the dance continues.

The 2026 Reality: Have We Learned Anything?

Fast forward to today. It's 2026, and the situation has evolved—but not as much as you might hope. Gertler's direct control has diminished due to continued pressure, but the system he helped create remains. The DRC still produces about 75% of the world's cobalt, and transparency is still a major issue.

On the positive side, there are genuine efforts underway. Blockchain tracing initiatives, like the one pioneered by IBM and Ford, attempt to track cobalt from mine to battery. Independent auditing has become more common. And consumer pressure—from people like you reading this—has forced companies to at least pay lip service to ethics.

But here's the uncomfortable truth I've observed: most of these solutions address the symptoms, not the disease. They make sure the cobalt in your specific battery didn't come from child labor (maybe), but they don't address the fundamental power imbalances that allowed the corruption in the first place.

The DRC government still struggles to collect fair royalties. Artisanal miners still work in dangerous conditions for poverty wages. And the companies buying the cobalt still have disproportionate bargaining power. We've put band-aids on a broken system while calling it progress.

What You Can Actually Do: Beyond Feeling Guilty

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Okay, enough with the depressing reality check. Let's talk about what actually matters: what you can do about it. Because feeling guilty about your smartphone doesn't help anyone. Taking action does.

First, become an informed consumer. When you're buying any device with a lithium-ion battery (which is most of them), check the company's sourcing policies. Apple, Samsung, Tesla, and others publish supply chain reports. They're not perfect, but companies that don't publish anything are almost certainly worse.

Look for specific commitments, not vague statements. "We aim to improve" means nothing. "We will achieve 100% third-party audited supply chains by 2028" is measurable. Hold them to it.

Second, support legislation that matters. The EU's Battery Regulation that came into force in 2025 is a good start—it requires carbon footprint declarations and due diligence for batteries sold in Europe. Similar legislation is being debated in the U.S. Write to your representatives. This stuff works.

Third, consider longevity over constant upgrades. The most ethical cobalt is the cobalt already in your device. I know, I'm a tech writer telling you not to buy the latest gadget—heresy! But seriously, keeping your smartphone for 3-4 years instead of 2 cuts your personal cobalt footprint significantly. And when you do upgrade, recycle properly.

The Tools for Transparency: How to Research Supply Chains Yourself

You might be wondering: "How do I even find this information?" Good question. Most companies bury their supply chain data in dense PDFs on corporate responsibility pages. But with the right tools, you can cut through the noise.

Start with the OECD Due Diligence Guidance. It's the international standard for responsible mineral sourcing, and companies that follow it will say so. If they don't mention it, that's a red flag.

For tracking specific initiatives, I use a combination of Google Alerts for company names plus "cobalt" or "DRC," and I monitor reports from organizations like Amnesty International, Global Witness, and the Enough Project. They do the investigative work so you don't have to.

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Now, here's a pro tip from my own workflow: when I need to gather data from multiple corporate reports or track changes over time, I sometimes use automated data collection tools. Being able to systematically compare what companies said last year versus what they're saying now reveals patterns that casual reading misses. Are they making progress or just recycling the same promises?

For visual learners, the Cobalt Institute publishes regular market reports with charts and data. And if you really want to dive deep, academic papers on resources policy will give you the unfiltered analysis without corporate spin.

Common Misconceptions About Cobalt (And Why They Matter)

Let's clear up some confusion I see constantly in online discussions. These misconceptions prevent real progress.

"Cobalt-free batteries will solve everything." Not exactly. While companies are developing lower-cobalt or cobalt-free chemistries (like LFP batteries), most experts agree cobalt will remain crucial for high-performance applications through at least 2035. And shifting away from DRC cobalt without addressing the underlying issues just moves the problem elsewhere.

"Boycotting DRC cobalt helps Congolese people." Actually, it might hurt them. Millions depend on mining for livelihoods. The goal should be reform, not abandonment. Better wages, safer conditions, fair royalties—that's what actually helps.

"This is just a tech industry problem." Nope. While electronics get the attention, nearly 60% of cobalt now goes to electric vehicles. This is an auto industry problem too. And with EV adoption accelerating, the pressure will only increase.

"Recycling will make mining obsolete." Eventually, maybe. But current recycling rates for cobalt are under 20%. Even with perfect recycling (which we're decades from), growing demand means we'll need new mining for the foreseeable future.

The biggest misconception? That this is someone else's problem to solve. It's not. Every time we buy a device without asking questions, we vote for the status quo.

The Road Ahead: What Ethical Tech Looks Like in 2026 and Beyond

So where do we go from here? The Gertler era exposed the rot in our system, but it also created an opportunity. We're at an inflection point where consumers, investors, and regulators are all paying attention simultaneously. That doesn't happen often.

In my conversations with industry insiders, I'm seeing genuine change—slow, imperfect, but real. More companies are investing in traceability technology. More investors are asking about ESG (environmental, social, and governance) factors. And more consumers are voting with their wallets.

The next frontier is blockchain verification. Not as a buzzword, but as an actual tool. Several pilot projects now tag cobalt from specific mines and track it through processing. The technology isn't perfect yet—it can be gamed—but it's better than the paper-based systems that failed us before.

Another promising development: direct partnerships between tech companies and mining cooperatives. By cutting out layers of intermediaries, companies can pay better prices directly to miners while ensuring better conditions. Fairphone has pioneered this approach, and others are following.

If you want to support these efforts, consider products from companies leading the way. Fairphone 5 remains the gold standard for repairable, ethically sourced smartphones. For electric vehicles, research which manufacturers are most transparent about their battery supply chains—the differences are significant.

Ultimately, the lesson of the Gertler scandal isn't that technology is bad. It's that technology without ethics is dangerous. The same innovation that gives us smartphones and electric vehicles can—and must—give us transparent supply chains and fair labor practices.

The cobalt in your devices represents both our greatest technological achievements and our most profound ethical failures. But here's the good news: we get to decide what it represents tomorrow. Ask the hard questions. Support the right companies. Demand better. Because the clean energy future shouldn't be built on a dirty past.

Lisa Anderson

Lisa Anderson

Tech analyst specializing in productivity software and automation.