African Critical Mineral Competition: The US Watches China and Starts to Stir the Pot

The Democratic Republic of Congo (DRC), known as the "Saudi Arabia of Cobalt," has a large population of about 110 million people and rich mineral resources that power everything from wind turbines to next-generation weapon systems. In addition to cobalt, the country is also the world's second-largest copper producer, another key element driving 21st-century technology.

"China's dominant position in Africa's critical minerals sector has been an eyesore for the United States," said Yun Sun, director of the China Program at the Stimson Center in Washington. "The Trump administration has made it a priority."

In this context, resource-rich DRC is trying to court the Trump administration without risking the loss of its main investment and trade partner.

In March this year, with U.S. support, the DRC blocked a subsidiary of China North Industries Group Corporation, a Chinese arms manufacturer, from acquiring a local copper-cobalt producer. The group already owns mines near Kolwezi. However, the alternative acquisition plan supported by the U.S. has yet to materialize.

In late April, foreign ministers from the DRC and Rwanda traveled to Washington, where they signed a "statement of principles" under the witness of U.S. Secretary of State Marco Rubio, pledging to work together to achieve peace agreements. On April 17, Mousad Brouce, senior advisor on African affairs for Trump, stated that he and Tshisekedi discussed a mineral agreement and planned future directions, with institutions such as the U.S. International Development Finance Corporation potentially supporting private investments in the DRC's mining industry and infrastructure.

The U.S. Department of State was more outspoken about the purpose of any agreement, accusing competitors of restricting access to critical minerals and metals: "China's dominant position in the critical mineral supply chain poses a significant challenge to America's industrial and technological capabilities and cannot continue," said the spokesperson.

EVelution Energy, a company based in Arizona, is racing to become one of the first companies to open a commercial-scale cobalt refinery in the U.S. The company plans to start production in 2027 and expects to import from the DRC. Executive Vice President Jill Michel-Garcia said, "the peace-for-minerals agreement will help ensure that America's automotive, aerospace, and defense industries obtain vital mineral resources and reduce risks to the American cobalt supply chain from China."

Meanwhile, KoBold Metals, a company backed by Microsoft founder Bill Gates and Amazon CEO Jeff Bezos, which previously showed interest in the DRC, now hopes to invest over $1 billion to develop lithium mines located 270 miles northeast of Kolwezi.

Source: Bloomberg

Original article: https://www.toutiao.com/article/1832807883114507/

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