A Race for Cobalt: US and China Compete for Control of Critical Mineral
The Democratic Republic of Congo (DRC) possesses a wealth of natural resources, including enormous reserves of cobalt, a mineral essential for the production of electric car batteries, smartphones, laptops, and advanced military technology.
This abundance has placed the DRC at the center of a geopolitical struggle between the United States and China, both eager to secure stable access to this vital commodity.
China’s Longstanding Advantage
China has been steadily building its presence in the DRC for over a decade, forging strong ties with the Congolese government. This relationship, cemented by mining contracts and infrastructure development projects, has granted China a significant edge in cobalt production and refining.
Chinese companies control half of the DRC’s top 10 cobalt mines and half of global cobalt refining capacity. Africa’s second largest rainforest plays host to this critical commodity, making the country a key player in the global energy transition toward a sustainable future.
Over the past decade, Chinese companies have poured billions of dollars into acquiring American and European mining companies operating in the DRC.
In October, US officials accused China-based CMOC 3993 Group of using predatory practices to flood the cobalt market and deter potential competitors. Additionally, it was revealed that the world’s largest electric vehicle battery maker, CATL, a Chinese company, owns 25% of CMOC Group.
“This behavior not only harms competition but also jeopardizes the energy transition in the US,” stated José Fernández, US Undersecretary of State responsible for international energy policy.
A Shifting Tide?
The Biden administration has signaled a renewed interest in securing access to critical minerals, recognizing the strategic vulnerability of relying heavily on Chinese supply chains.
In recent years, the United States has been hesitant to compete for access to African minerals. Factors like corruption and inefficient infrastructure deterred American investment. In contrast, China has capitalized on these challenges, filling the void left by the US’s lack of engagement.
However, the U.S. has recently pledged billions in funding for infrastructure development projects across Africa, signaling a renewed commitment to establishing a stronger presence on the continent. This includes investing in a railway project in Angola, designed to facilitate the transportation of cobalt and other minerals from the DRC to the Angolan port of Lobito.
“It certainly appears things are starting to change,” stated Daniel van Dalen, a senior analyst at Signal Risk, a political risk consultancy specializing in Africa.
The US shift in approach, however, might be coming too late. With over three decades of cultivating strong relationships and investments in the DRC, China’s grip on the
country’s cobalt resources is formidable.
The fight for control over critical minerals like cobalt will likely intensify in the coming years, with geopolitical implications extending far beyond this remarkable African nation.
The outcome of this competition will profoundly impact the future of the green revolution, the viability of electric vehicles, and the global balance of power.
It remains to be seen whether the US can seize upon this opportunity, or if it will fall further behind in the race to secure the raw materials of the future. Only time will tell who controls this vital resource: America seeking to regain its former influence or a determined, China with its long-standing presence in equitable, mutually beneficial relationships with African nations.
What specific actions is the Biden administration taking to diversify cobalt sources and strengthen US involvement in the DRC?
## A Race for Cobalt: Interview with Dr. Anya Petrova
**Host:** Welcome back to the show, Dr. Petrova. Today we’re diving into the geopolitical battleground that is the Democratic Republic of Congo, specifically focusing on its massive cobalt reserves. You’ve been following this situation closely. Could you start by explaining why cobalt is so crucial in today’s world?
**Dr. Petrova:** Absolutely. Cobalt is an essential component in rechargeable lithium-ion batteries, which power everything from electric vehicles and smartphones to laptops and even advanced military technology. As we transition to a more sustainable future relying on electric vehicles and renewable energy, the demand for cobalt is skyrocketing.
**Host:** And the DRC holds the lion’s share of global cobalt reserves?
**Dr. Petrova:** That’s right. The DRC has the world’s largest reserves of cobalt, with estimates indicating it accounts for roughly 70% of global production. [1] This makes the DRC a strategically vital player in the global race for this critical mineral.
**Host:** You mentioned a “race.” Who are the main competitors vying for control of Congo’s cobalt?
**Dr. Petrova:** The main players are undoubtedly the United States and China. China has had a significant head start, building strong economic ties with the Congolese government over the past decade through mining contracts and infrastructure investments. Chinese companies now control a substantial portion of cobalt mines and refining capacity in the DRC.
**Host:** So, China has a clear advantage?
**Dr. Petrova:** Yes, for now. China-based companies control half of the DRC’s top 10 cobalt mines and half of global cobalt refining capacity. [1] However, the Biden administration has recognized the strategic vulnerability of relying heavily on Chinese supply chains for critical minerals like cobalt and is actively seeking to diversify sources and strengthen US involvement in the DRC.
**Host:** We’ve heard reports of China engaging in “predatory practices” in the DRC cobalt market. Can you elaborate on that?
**Dr. Petrova:** This is a highly contested area. There have been accusations by US officials that Chinese companies, like CMOC Group, are deliberately flooding the cobalt market to drive down prices and deter potential competition. They’re also pointing to CMOC’s relationship with CATL, the world’s largest electric vehicle battery maker, which owns a significant stake in CMOC. [1]
**Host:** What are the implications of this competition for the global energy transition?
**Dr. Petrova:** The stakes are incredibly high. If the US and its allies are unable to secure access to cobalt, it could significantly impede the transition to electric vehicles and clean energy, potentially slowing down progress on climate change mitigation.
**Host:** Thank you for shedding light on this complex situation, Dr. Petrova. This is definitely a story we’ll continue to follow.
