Competition for critical minerals has intensified as both China and the United States seek to secure access to essential resources in Africa. These minerals, including lithium, cobalt, and rare earth elements, are vital for advancing technology across various sectors such as electronics, renewable energy, and defense. With global demand escalating, the geopolitical landscape is shifting, placing African nations at the center of this race.
Africa is rich in critical minerals, holding approximately 30% of the world’s deposits. The Democratic Republic of Congo (DRC) stands out as a major player, producing nearly three-quarters of the global cobalt output. Meanwhile, Australia and Chile contribute significantly to lithium production, accounting for almost half and a quarter, respectively. China has emerged as a dominant force in the supply chain, refining over 90% of rare earth elements and a significant portion of lithium and cobalt.
China’s extensive investments in Africa, particularly in mining operations, are reshaping the dynamics. The nation’s Belt and Road Initiative, launched in 2013, has seen China sign over 200 agreements with more than 150 countries. This ambitious project enhances infrastructure and connectivity, facilitating the extraction of resources while often tying these agreements to infrastructure development.
Strategic Partnerships and Resource Diplomacy
The United States and the European Union, traditionally aligned with African nations, have also intensified their engagement to secure mineral supplies. The EU has established strategic partnerships with countries such as the DRC, Rwanda, Namibia, and Zambia, while the US has formed trilateral agreements with the DRC and Zambia. This collaboration aims to create an integrated value chain for electric vehicle (EV) batteries, among other initiatives. Recently, the US signed a ‘Minerals for Peace’ deal with the DRC and Rwanda, aiming to address ongoing conflicts in eastern Congo.
Despite the potential benefits of these partnerships, research indicates that they often reinforce Africa’s marginal position within the global value chain. Many arrangements replicate colonial dynamics, perpetuating dependency and imbalances of power. African nations must navigate these relationships carefully to ensure they derive genuine benefits from their resources.
Development researchers emphasize that African countries should take the lead in formulating national strategies to leverage their mineral wealth. This includes focusing on local value addition and broader economic benefits. To transform mineral resources into sustainable prosperity, governance reforms and regional cooperation are essential. These changes can help avert the so-called “resource curse,” where abundant resources do not translate into economic growth.
The Emerging Global Landscape
The geopolitical rivalry between China and the US is evolving into a struggle for control over critical technologies reliant on these minerals. Renewable energy, defense, aerospace, and artificial intelligence sectors are increasingly dependent on access to critical minerals. As competition escalates, it is crucial for African nations to maintain neutrality and engage in equitable partnerships that foster genuine development.
The authors of a recent publication from the Indian Council of World Affairs argue that without clearly defined priorities in the extractives sector, African countries risk remaining trapped in a cycle of dependency. External powers will continue to influence Africa’s future unless there is a concerted effort to capture real value from its vast mineral wealth.
As the race for Africa’s critical minerals heats up, it remains imperative for China, the US, and the EU to engage with African nations in a manner that promotes just development across the continent. By fostering mutually beneficial relationships, the potential exists for African countries to redefine their role in the global economy, ensuring that they are not merely sources of raw materials but active participants in shaping their destinies.
