European regulators might be shooting themselves in the foot with their latest move. New safety regulations targeting cobalt processing could absolutely wreck what's left of the continent's domestic cobalt industry.

The proposed rules would impose stricter workplace safety standards and environmental controls on cobalt refineries and processing facilities. Sounds reasonable on paper, right? But here's the kicker – compliance costs could push many smaller operators completely out of business.

Cobalt's already a tricky market. Europe imports most of its supply from the Congo, where production conditions have been controversial for years. These new regulations were supposed to clean up European operations and maybe shift some supply chains back home. Instead, they might just accelerate the industry's collapse on the continent.

Some industry veterans are calling it regulatory overreach. Others say it's necessary for worker protection. Either way, European cobalt processors are caught in the middle, facing a choice between massive capital investments or shutting down entirely.

The timing couldn't be worse either. With global battery demand surging and supply chains still recovering from recent disruptions, killing off domestic cobalt capacity seems like a questionable strategic move. But that's where we're headed unless someone pumps the brakes on these rules.