Critical minerals such as lithium, cobalt, nickel, copper, rare earth elements, and platinum group metals are essential for modern technologies. They are key to industries ranging from electronics and telecommunications to renewable energy, defence, and aerospace systems.
The global demand for these minerals has been growing, as has the competition for them.
The supply and production of these minerals is largely concentrated in the global South. Most of the world’s cobalt is produced in the Democratic Republic of Congo (DRC). It produces almost three-quarters of the global cobalt output. Australia produces nearly half of the world’s lithium. Chile accounts for another quarter of global lithium production, with China following at 18%.
China dominates the supply chain through massive investments in mining operations, particularly in Africa. It is responsible for refining 90% of rare earth elements and graphite, and 60-70% of lithium and cobalt. The United States and European Union — long-term trading partners with African nations — have also adopted policies to secure access to Africa’s resources.
The question is what African countries are doing to take advantage of this demand for these critical minerals, especially to drive their own development.
As development researchers we address this question in a special publication on the rising significance of critical minerals in Africa by the Indian Council of World Affairs. In another publication, we look at how emerging resource diplomacy may reinforce Africa’s position in the global economy as a mere source of raw materials.
We recommend that African countries determine for themselves how to benefit from this global competition. This includes developing national strategies that emphasise local value addition and benefits. Also, national strategies should begin positioning African countries to gain from their resources beyond value addition.
The competition for Africa’s critical minerals underscores the urgency of governance reforms and regional cooperation to transform mineral wealth into sustainable prosperity, avoiding another “resource curse.”
A Chinese-led ‘New World Order’ is emerging to counter the US-led Western influence. Eastern and global South countries demonstrate this shift through groupings like BRICS and South-South cooperation in technology and development. China has strengthened its influence in the global South through initiatives such as the Belt and Road Initiative.
Launched in 2013, the Belt and Road Initiative is an ambitious infrastructure project that connects continents by land and sea. Since then, over 200 agreements have been signed with over 150 countries and 30 international organisations. The initiative has expanded China’s access to resources. This is often in exchange for infrastructure development that links mining regions to ports.
In Africa, China has invested heavily in mining and infrastructure. Its firms have spent about US$4.5 billion in lithium projects in Zimbabwe, the DRC, Mali, and Namibia. China’s strategic focus includes resource-rich countries such as the DRC, Zimbabwe, Zambia, South Africa and Ghana.
China recently marked the 80th anniversary of the end of World War II with a military parade. The parade projected China’s military strength with President Xi warning that China is “unstoppable.”
China is emboldened by its influence and access to critical minerals. This has strengthened its ability to acquire military hardware and other advanced technologies.
Source: Theconversation