Europe, US racing to challenge China’s dominance over vital African minerals market, but will they succeed?

As the global shift towards green energy continues, a significant race is underway. This race involves the control over the mining and refining of essential minerals such as cobalt, lithium, and graphite. These minerals are crucial for the production of electronics and electric vehicles. Currently, China is leading this race, controlling the majority of the market. However, the West, including the United States and European countries, is rapidly challenging this dominance.

During the recent Global Gateway Forum held in Brussels, the European Union (EU) expressed its intention to challenge China's dominance in the mining and processing of these vital minerals. The United States has also announced several plans aimed at securing mineral supplies from resource-rich Africa. In Central Africa, the Democratic Republic of the Congo (DRC) supplies over 70% of the world's cobalt, which is almost exclusively exported to China. Just south of the DRC, China has made substantial investments in Zambia, a country with one of the world's highest-grade deposits of copper. Now, both the EU and America are seeking to establish relationships with these countries.

On the sidelines of the Global Gateway Forum, the EU signed a memorandum of understanding (MOU) with the DRC and Zambia. The aim is to develop the value chains of critical and strategic raw materials. A similar agreement was made with the United States last year. The EU's Global Gateway strategy, which is seen as a counter to China's Belt and Road Initiative, plans to mobilise €300 billion (US$318 billion) over five years to fund infrastructure in developing countries. During the forum, the US and the EU also agreed to assist Angola, the DRC, and Zambia in developing the 'Lobito Corridor'. This transport link will connect southern DRC and northwest Zambia to regional and global trade markets via the Angolan port city of Lobito. The US initially pledged US$250 million for a study of the corridor. The objective is to establish a supply chain with less of a Chinese influence. The West could then play catch-up later by solidifying economic and political influence through trade agreements.