United States Aims to Broaden the Africa Minerals Supply Chain Dominated by China
United States Aims to Broaden the Africa Minerals Supply Chain Dominated by China

United States Aims to Broaden the Africa Minerals Supply Chain Dominated by China

  • 13-Oct-2023 7:23 PM
  • Journalist: Francis Stokes

Cape Town recently hosted the Green Energy Africa Summit as part of Africa Oil Week, bringing to the forefront the intense global competition over critical minerals supply chains, particularly those linked to the clean energy transition and the electric vehicle (EV) boom. This competition, primarily driven by the United States and China, is reshaping the dynamics of mineral resource access and processing in Africa, without being openly acknowledged at the summit.

China has maintained a stranglehold on the processing and supply of critical minerals, including but not limited to cobalt and lithium, extracted from the African continent. These minerals are indispensable for the development of clean energy technologies and the EV sector, both of which are rapidly expanding on a global scale. The vast resources found in African nations have turned the continent into a pivotal player in the global supply chain for these essential minerals.

In contrast, the United States has been intensifying efforts to establish an alternative supply chain, independent of China, for these vital minerals. The strategic objective is to reduce reliance on China, thus enhancing the stability of supply chains for clean energy and EV production. This diversification drive is gaining momentum and was a central topic of discussion at the Green Energy Africa Summit.

Kimberly Harrington, Deputy Assistant Secretary in the U.S. State Department’s Bureau of Energy Resources, attended the summit and outlined Washington's approach. When asked whether the U.S. was playing catch-up with China, Harrington avoided direct comparisons and succinctly stated that the U.S. is actively seeking to "diversify" its critical minerals supply chain. This choice of words implies a recognition of China's dominant position while signaling the American intention to chart an independent course.

On the other side of the equation, the Chinese Embassy in Washington maintained a circumspect stance when questioned about its perspective on the rivalry with the United States for Africa's natural resources. China, which has heavily invested in Africa's mineral sector, continues to be a dominant player in the region, actively engaging with African governments and businesses.

China's presence in Africa is multifaceted, with economic, political, and diplomatic dimensions, all of which contribute to its influence on the continent. China's response to the U.S. diversification efforts is likely to be nuanced, with a focus on maintaining its foothold in the African mineral sector while working to strengthen existing partnerships.

The intensifying rivalry between the United States and China over Africa's critical minerals supply chain has significant implications for the continent and the global market. Africa has a chance to leverage its position to secure favorable terms and maximize the benefits of its mineral wealth while mitigating potential risks associated with foreign competition.

This competition also underscores the broader struggle for control over critical minerals, which are vital for advancing clean energy technologies and EV adoption worldwide. It reveals the increasing recognition of the importance of securing a stable and diversified supply chain for these resources.

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