The New Scramble for Africa: How the US and China are Battling for Critical Minerals
The smartphone in your hand, the electric vehicle gaining traction on our roads, even the AI powering the latest innovations – all rely on a hidden network of resources. And right now, that network is at the heart of a geopolitical tug-of-war, with African nations holding a surprisingly pivotal position. For decades, China has dominated the supply of critical minerals, but a quiet shift is underway, as the US aggressively re-enters the fray, sparking a new scramble for Africa’s vast mineral wealth.
China’s Long Game and the US Response
China’s strategy has been decades in the making. It’s not just about possessing significant domestic reserves of minerals like rare earths; it’s about controlling the entire supply chain – from mining and processing to manufacturing. This dominance has given Beijing considerable leverage, a fact underscored by occasional threats to curb exports, sending ripples through global tech markets. The US, recognizing its vulnerability, is now playing catch-up, and Africa is central to its plan.
In 2023, the US surpassed China as the largest foreign direct investor in Africa, pouring in $7.8 billion, compared to China’s $4 billion, according to the China Africa Research Initiative at Johns Hopkins University. This marks a significant reversal, the first time the US has held the lead since 2012. The driving force behind this surge is the US International Development Finance Corporation (DFC), established in 2019 with a clear mandate: to counter China’s influence in strategically important regions.
Trinity Metals: A Case Study in Shifting Alliances
The impact of this investment is already visible on the ground. Rwandan mining company Trinity Metals recently secured a $3.9 million grant from the DFC to expand its operations, producing tin, tantalum, and tungsten. Chairman Shawn McCormick emphasizes the company’s commitment to responsible sourcing and supplying the US market. “We have shown that there is a way to produce these materials in a conflict free, child labour free way that is professionalised,” he states. Trinity is now shipping tungsten to Pennsylvania and has agreements to send tin for smelting in the same state.
While McCormick insists the decision to prioritize US supply chains was commercially driven, the DFC’s funding undoubtedly played a role. Trinity’s 5% ownership by the Rwandan government and the involvement of Irish investment firm TechMet further illustrate the complex web of interests at play.
Beyond Investment: The Need for African Agency
However, simply attracting investment isn’t enough. Economist Sepo Haihambo cautions against a passive approach. “To expect [the Americans] to show up and negotiate and propose clauses that are in Africa’s best interests on Africa’s behalf would be unrealistic,” she warns. African nations must proactively define their desired outcomes and negotiate assertively.
Haihambo advocates for moving beyond simple “cash for minerals” deals, suggesting production sharing agreements, joint ventures, and local equity participation. “Ultimately that then creates an opportunity for African countries to create, maybe, sovereign wealth funds that can then invest into developmental areas like education, healthcare etc.” Crucially, she stresses the importance of developing local processing capabilities to capture more value within the continent.
Refining the Future: ReElement Africa’s Vision
One company attempting to address this gap is ReElement Africa, a subsidiary of American Resources, which is building a critical minerals refinery in South Africa’s Gauteng province. CEO Ben Kincaid envisions a future where refining facilities are located alongside mining projects, fostering economic development and upskilling the local workforce. This approach, he believes, lays the foundation for long-term industrial growth.
The Tariff Trap: A US Misstep?
Despite these positive developments, some argue the US is hindering its own efforts. International economist Prof. Lee Branstetter points to the Trump administration’s trade tariffs on African nations as a significant misstep. These tariffs have dampened enthusiasm for US investment at a time when dissatisfaction with Chinese projects is growing in some parts of sub-Saharan Africa. “Had the current administration not indiscriminately slapped tariffs on large numbers of African countries… the United States would probably have been in a better position,” he argues.
A Multi-Polar Future for African Minerals
The competition for Africa’s critical minerals isn’t limited to the US and China. Brazil, India, and Japan are also increasing their engagement with the continent, adding another layer of complexity. This multi-polar dynamic could potentially benefit African nations, providing them with more leverage and options. However, it also requires careful navigation to ensure that these partnerships are truly mutually beneficial.
The future of technology, renewable energy, and even national security hinges on securing access to these vital resources. Africa is no longer a peripheral player in this equation; it’s at the center of a new global competition. The continent’s ability to leverage its mineral wealth for sustainable development will depend on its strategic foresight, assertive negotiation, and commitment to responsible sourcing. The stakes are incredibly high, not just for the US and China, but for the future of Africa itself.
What strategies do you think African nations should prioritize to maximize the benefits of this renewed interest in their mineral resources? Share your thoughts in the comments below!
