China Dominates Africa’s Critical Minerals Race, Outpacing the US
China is leading in Africa’s critical minerals investments, having spent over USD 10 billion primarily in mining assets across the continent, posing a challenge to the United States. With a significant focus on cobalt, lithium, and rare earth across nations like the DRC, China’s proactive engagement is reshaping the industry’s landscape.
China continues to dominate the competition in Africa regarding vital minerals, as the United States struggles to keep pace. Experts note that China’s significant investments over the years—totaling billions—are now yielding substantial benefits. This situation has triggered concerns within Washington, contributing to an intensifying global race for rare earth elements.
Chinese enterprises have made considerable headway in Africa’s mining sector, particularly in countries such as the Democratic Republic of Congo (DRC), Botswana, and Zimbabwe, where they have invested over USD 10 billion in acquiring essential mineral assets. The focus has primarily been on commodities like cobalt, lithium, and rare earth metals.
According to insights from the Brookings Institution, within two years post-pandemic, China has resumed and intensified its economic engagement with Africa, notably favoring the acquisition of mining assets. The DRC, being the largest producer of cobalt globally and a significant copper source, emerged as a key target for Chinese investment, attracting nearly USD 1 billion in 2023.
In summary, China’s established presence and substantial investment in Africa’s critical minerals market confer a significant competitive advantage in the global arena. The United States faces challenges in matching this momentum, as China maintains its lead thanks to early and aggressive investment strategies. This scenario raises critical implications for future supply chains and geopolitical dynamics surrounding essential minerals.
Original Source: www.scmp.com
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