Sub-Saharan Africa is emerging as the battleground for the world’s critical minerals, as China, the United States, and Europe compete to secure vital resources essential for the energy transition. The continent holds a significant portion of proven global critical mineral reserves, making it a strategic hotspot for battery, electric vehicle, and renewable energy industries.
The Democratic Republic of Congo dominates global cobalt production, while South Africa, Gabon, and Ghana collectively produce the majority of manganese. Meanwhile, Zimbabwe, the DRC, and Mali hold untapped lithium deposits, positioning Africa as a pivotal player in the global shift toward clean energy.
Lithium-ion batteries, crucial for electric vehicles and large-scale energy storage, rely on lithium, graphite, nickel, cobalt, and manganese—all abundant across Africa. This wealth of critical minerals represents a significant economic opportunity, attracting international investment from China, the US, and Europe alike.
China’s Dominance: Belt and Road Initiative and Global Refining
China has historically held the upper hand in Africa’s critical mineral sector. Its Belt and Road Initiative (BRI) has enabled large-scale infrastructure and resource-for-infrastructure deals, such as the Sicomines project in the DRC, which ties mining revenue to funding for roads, hospitals, and local infrastructure.
China’s strategy emphasizes the export of raw materials to feed its dominant refining and manufacturing sectors. The International Energy Agency reports that China leads global refining in nearly all strategic minerals, holding an average market share of 70%.
Chinese investment in Africa spans multiple minerals-rich countries, including South Africa (manganese), Mozambique (graphite), Niger (lithium), Algeria (potential lithium), and Mauritius. While investments have fluctuated due to economic disruptions and the pandemic, China retains a commanding position in the supply and processing of critical minerals, reinforcing its global influence.
US Strategy: Minerals Security and Strategic Partnerships
The United States has framed Africa’s mineral resources as a matter of national security, seeking to diversify supply chains away from China. The US imports significant portions of cobalt, lithium, graphite, and copper from abroad, making African sources critical for domestic manufacturing and energy transition needs.
To secure supply chains, the US has pursued both transactional agreements and long-term infrastructure initiatives. Notable efforts include trilateral agreements to develop integrated value chains for electric vehicle batteries, covering extraction, processing, and manufacturing. Projects like the Lobito Corridor railway in Angola aim to enhance mineral transport from Zambia and the DRC to global markets.
The Minerals Security Partnership, established by the US and its allies, focuses on building resilient and sustainable supply chains while promoting environmental, social, and governance (ESG) standards. This approach ensures that mining and processing in Africa balance economic gains with human rights and community development.
Europe Enters the Fray
European nations, including the EU, UK, and Norway, are increasingly active in Africa’s critical minerals sector. Partnerships and investment frameworks, such as Tanzania’s nickel initiatives, aim to secure long-term access to strategic minerals while fostering local beneficiation and industrial development. Europe’s participation diversifies the pool of international investment and creates competitive options for African governments.
Africa’s Path to Sustainable Growth
Africa’s mineral wealth offers immense potential, but capitalizing on it requires careful policy and planning. Historically, the continent has relied heavily on raw material exports, leaving local communities with limited long-term benefit. Experts emphasize the need for value addition through local refining, industrial production, and manufacturing, which would stimulate rural economic growth and empower emerging middle-class populations.
The African Continental Free Trade Area (AfCFTA) is a key tool for internal market growth, connecting over a billion people across multiple countries. By reducing tariffs and promoting intra-Africa trade, AfCFTA could increase mineral trade within the continent while reducing reliance on external markets. Early examples include Namibia exporting salt to Nigeria under the AfCFTA framework, signaling the potential for intra-African supply chains.
Strategic Leverage for Africa
Africa sits at a crossroads of global demand and geopolitical competition. While China, the US, and Europe vie for control over raw materials, African nations have the opportunity to capture long-term value, support sustainable development, and shape local economies around critical mineral industries.
As macro-economists note, Africa has its moment of leverage, but turning potential into lasting benefits will require investment in local industry, careful management of resources, and strategic partnerships that balance foreign interests with domestic growth.
By strengthening onshore processing, manufacturing, and value chain integration, Africa can transform its natural wealth into sustainable economic power, positioning the continent as a central player in the global energy transition.
