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The Global Competition for Africa's Critical Minerals: Understanding the Regional Dynamics

Strategic Insights

— 2 min read

African countries are central to the global demand for critical minerals, such as lithium, cobalt, and rare earth elements, essential for modern technologies ranging from electronics to renewable energy. The production and supply of these minerals is largely concentrated in the Global South, with the Democratic Republic of Congo (DRC) producing almost three-quarters of the world's cobalt output. China dominates the supply chain, responsible for refining 90 percent of rare earth elements and graphite, and 60-70 percent of lithium and cobalt. African countries must determine how to benefit from this global competition, developing national strategies that emphasize local value addition and benefits.

Key Takeaways:

  • The DRC produces almost three-quarters of the world's cobalt output, with Australia producing nearly half of the world's lithium.
  • China dominates the supply chain, responsible for refining 90 percent of rare earth elements and graphite, and 60-70 percent of lithium and cobalt.
  • The US and EU have adopted policies to secure access to Africa's resources, with the EU having strategic partnerships on minerals with the DRC, Rwanda, Namibia, and Zambia.
  • African countries need to develop national strategies that emphasize local value addition and benefits, to avoid being locked into dependency on external powers.
  • The competition between the US and China for critical minerals will intensify, with African countries needing to remain neutral and engage in meaningful, mutually beneficial partnerships.
  • China has invested heavily in mining and infrastructure in Africa, with firms spending about US$4.5 billion in lithium projects in Zimbabwe, the DRC, Mali, and Namibia.
  • The Belt and Road Initiative (BRI) has expanded China's access to resources, with over 200 agreements signed with over 150 countries and 30 international organisations since its launch in 2013.
  • African countries account for about 30 percent of the world's critical mineral deposits, making them central to geopolitical contest between the US and China.

Statistics:

  • The DRC produces 73% of the world's cobalt output.
  • Australia produces 47% of the world's lithium output.
  • China is responsible for refining 90% of rare earth elements and graphite, and 60-70% of lithium and cobalt.
  • China has invested US$4.5 billion in lithium projects in Zimbabwe, the DRC, Mali, and Namibia.
  • The Belt and Road Initiative (BRI) has signed over 200 agreements with over 150 countries and 30 international organisations since its launch in 2013.
  • African countries account for about 30% of the world's critical mineral deposits.

Sources:

  • Indian Council of World Affairs
  • Boafo, J., Spencer, R., & Dotsey, S. (No date mentioned). The Rising Significance of Critical Minerals in Africa.

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