China has invested over US$10 billion in Africa’s critical minerals, outpacing the US. Key investments include cobalt and lithium, particularly in the DRC, which received US$1 billion in 2023. China’s focus on these minerals supports its technology and renewable energy sectors.
China has made significant investments in Africa’s mining sector, particularly in the acquisition of critical minerals. This strategy has created a substantial lead over the United States, with many experts highlighting that China’s investments now exceed US$10 billion across various African nations. The focus has primarily been on cobalt, lithium, and rare earths, crucial for modern technology and renewable energy.
Following the pandemic, China has resumed its economic activities in Africa. A report from the Brookings Institution notes that this renewed engagement has intensified in 2023 and 2024, notably shifting towards the acquisition of valuable mineral resources. These developments indicate China’s intent to solidify its dominance in this sector.
The Democratic Republic of Congo (DRC) has emerged as a key area for Chinese investments, being the world’s largest cobalt producer and a significant copper source. In 2023, Chinese companies invested approximately US$1 billion in the DRC alone, showing the importance of this region for securing critical minerals needed for high-tech and defense systems.
This race for critical minerals highlights the strategic nature of resource acquisition in Africa. As China continues to strengthen its position, the US faces challenges in catching up and sustaining its competitiveness in securing the necessary resources for its technological needs.
The ongoing global competition for rare earths and critical minerals underscores the geopolitical significance of Africa’s mineral wealth. China’s comprehensive engagement in the region suggests that it will maintain its leading role in the critical minerals race, affecting global supply and energy transitions.
China’s extensive investments in Africa’s mining sector have positioned it as a leader in the critical minerals race, significantly ahead of the United States. With over US$10 billion funneled into mines producing cobalt, lithium, and rare earths, particularly in the DRC, China’s strategy is deeply focused on securing resources for technology and renewable energy. As global competition intensifies, the landscape for critical minerals in Africa is increasingly pivotal in shaping international relationships and market dynamics.
Original Source: www.scmp.com
