【Text by Observer Net, Wang Yi】Against the backdrop of intensified global competition in new energy, the United States has accelerated its efforts to find mineral resources around the world. According to a report by Hong Kong's South China Morning Post on September 19, the United States announced it will fund a copper-cobalt mine project in Zambia, attempting to challenge China's dominant position in critical minerals.

On the 18th, the U.S. Trade and Development Agency (USTDA) signed an agreement with Metalex Africa, a subsidiary of U.S. metal company Metalex Commodities, providing the company with a $1.4 million grant to fund a feasibility study. The study aims to explore whether a copper-cobalt mine in the northwest of Zambia can expand its capacity, and whether it can add about 25,000 tons of copper-cobalt concentrate per year for direct export to the United States and its allies.

A USTDA spokesperson said their funds are intended to help the project secure other financing from the private sector, but not directly used for mining or processing.

However, the spokesperson openly stated that the core intention is to help the United States obtain more diversified sources of critical minerals, while establishing direct connections between U.S. companies and local processing facilities, "transporting more critical minerals to the United States." It is expected that the mine could start supplying from 2028 to 2029.

Thomas Hardy, Acting Director of USTDA, said that through the use of U.S. technology and expertise, the collaboration with Metalex would "ensure that the U.S. industry can steadily obtain the necessary inputs, maintain security and competitiveness, and be prepared for future challenges."

Ayo Sopitan, CEO of Metalex Commodities, said that the USTDA funding was a "significant milestone" for the mine, stating, "This grant will help us expand our existing resources, clarify the project phases, and verify the feasibility of expansion."

Copper mine in Zambia, Reuters

The South China Morning Post pointed out that cobalt, as a key material for manufacturing electric vehicle batteries, military equipment, and electronic products, is almost monopolized by Chinese companies in terms of mining technology and processing. This move by the United States is not only about mineral supply, but also part of its support for domestic companies to increase investment in the "Lobito Corridor".

"The Lobito Corridor" is a railway line 1,300 kilometers long connecting the Democratic Republic of the Congo, copper-rich Zambia, and Angola's Lobito port, which the United States sees as an "alternative" strategy to bypass China's African critical mineral supply chain. Among them, the Democratic Republic of the Congo and Zambia, as major suppliers of copper and cobalt, have drawn much attention. The U.S. International Development Finance Corporation (DFC) and the U.S. Agency for International Development (USAID) have both promised to provide financial support.

Chris Berry, President of the U.S. commodities consulting firm House Mountain Partners, said although the amount of the USTDA grant is small, "it is a good sign, indicating that despite the noise surrounding industrial reshoring, the U.S. government continues to promote partnerships."

After the Trump administration took office, it announced tariffs and issued executive orders to encourage manufacturing to return, causing U.S. public concern that he might suspend the major projects of the previous Biden administration, the "Lobito Corridor." However, in April this year, a diplomat from the Trump administration told Reuters that the U.S. would still commit to supporting the "Lobito Corridor."

USTDA has invested in several projects under the "Lobito Corridor," focusing on developing energy, digital, and transportation infrastructure. DFC provided approximately $550 million in loans for upgrading the railway and mineral ports of the "Lobito Corridor."

In July, Trump met with several African leaders at the White House and told them he saw "the huge economic potential of Africa." At the time, The Economist pointed out that the Trump administration clearly stated that the U.S. priority in Africa is business, no longer "viewing Africa as a continent in need of charity, but rather as a capable business partner," and "if increased U.S. business means reduced Chinese business, they would feel better."

However, Berry said that China's investments in Africa far exceed those of the U.S., "at least for now, I don't think China is really worried," the USTDA's funds are currently just a signal, indicating "that the U.S. has embarked on a realistic competition path with China on the African continent."

Moreover, despite the U.S. attempts to package the "Lobito Corridor" as its contribution to African infrastructure, due to the project's high cost and numerous challenges, there is uncertainty about whether it can be implemented on schedule. A previous analysis article published by the U.S. Institute of Peace stated that building the "Lobito Corridor" project requires overcoming many challenges, the most critical being proving its commercial viability.

The South China Morning Post also mentioned in a report in August that regardless of how the U.S. packages it, the fact is that the "Lobito Corridor" is part of the competition for control over mineral trade in Central Africa.

Professor Joseph Shilonda of the University of Kinshasa in the Democratic Republic of the Congo said that the Lobito port is "the only fast route for transporting key minerals mined in the Copperbelt region of the Democratic Republic of the Congo and Zambia to the Atlantic." He pointed out that China has funded infrastructure construction in most countries in East Africa, placing it in a favorable position in the key minerals sector of the Democratic Republic of the Congo.

Gyude Moore, former Minister of Public Works of Liberia, previously told The Economist that when the U.S. policy towards Africa is purely realist rather than altruistic, every U.S. transaction is like a "pacifying mechanism," aimed at preventing the already negative situation from worsening further.

"Besides some resource-rich countries, most African countries are unable to offset the impact of U.S. aid cuts and tariff increases," Moore said.

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