Apple, Microsoft, and Tesla Affected by Deadly Conflict in The Congo

Since 2012, the M23 was formed by defected Tutsi officers from the National Congress for the Defense of the People (CNDP), who claimed the government failed to honor peace agreements that would have given Tutsi communities better political representation and protection. 

Since M23's resurgence in late 2021, hundreds to several thousand people are estimated to have been killed in direct fighting, attacks on civilians, and conflict-related displacement. However, this represents only a portion of the broader death toll in eastern DRC. Approximately seven million people have been killed since the 1990’s in DRC for various conflicts.  

Even though the conflict may be far away, the ongoing battles in the Democratic Republic of Congo (DRC) is having far-reaching implications for U.S. consumers, particularly in the technology and automotive sectors. The DRC holds approximately 70% of the world's cobalt reserves and significant deposits of other critical minerals essential for modern electronics and electric vehicle batteries. 

"Cobalt mining is the slave farm perfected—the cost of labor has been nullified through the degradation of Africans at the bottom of an economic chain that purports to exonerate all participants of accountability through a shrewd scheme of obfuscation adorned with hypocritical proclamations about the preservation of human rights," Sidharth Kara, author, researcher, and activist known for his work on modern slavery, human trafficking, and child labor. 

"Our daily lives are powered by a human and environmental catastrophe in the Congo," Sidharth Kara. 

Recent escalations in fighting between government forces and armed groups in the mineral-rich eastern regions have disrupted mining operations and supply chains. This instability has contributed to rising prices for consumer electronics, such as cell phones, computers, and electric vehicles in the United States, as manufacturers grapple with supply constraints and increased costs for raw materials.

Major technology companies have reported challenges in securing reliable supplies of conflict-free minerals from the region. Companies like Apple, Microsoft, and Tesla, which rely heavily on cobalt and other DRC-sourced minerals for their products, have been forced to seek alternative suppliers or absorb higher costs – or pass them on to the consumer. These challenges are increasingly reflected in consumer prices, with some analysts estimating that the conflict has contributed to a 5-10% increase in production costs for certain electronic devices.

The automotive industry has been particularly affected, as electric vehicle batteries require substantial amounts of cobalt and other minerals found in the DRC. Several major automakers have reported delays in their electric vehicle production schedules due to supply chain disruptions in the region.

Beyond electronics and vehicles, the conflict's impact extends to other consumer goods. The DRC is also a significant source of copper, which is used in household appliances, plumbing fixtures, and electrical wiring. Supply chain disruptions have led to increased prices for these products as well.

U.S. retailers and manufacturers are working to diversify their supply chains and develop alternative sources for these critical minerals. However, the DRC's dominant position in global mineral reserves means that continued instability in the region will likely continue to affect U.S. consumer prices and product availability in the near term.

This situation has also intensified discussions about responsible sourcing and the need for greater supply chain transparency, as consumers become increasingly aware of the connection between their purchases and global conflicts.

The 2010 Dodd-Frank Act in the US required companies to disclose their use of conflict minerals from the DRC region, which pushed many manufacturers to improve their supply chain due diligence. The EU has similar regulations.

* The 2010 Dodd-Frank Act in the US required companies to disclose their use of conflict minerals from the DRC region, which pushed many manufacturers to improve their supply chain due diligence. The EU has similar regulations.