Africa is one of the continents richest in minerals needed for the manufacture of batteries and solar panels, and other industries whose importance is escalating with time, and an economist for “Sky News Arabia” monitors China’s efforts to strengthen its relationship with the countries that own these minerals to seize control of the mines and mining industries there, and use it as a bargaining chip with Washington.
Congo Square
The Democratic Republic of the Congo has 70% of the reserves of cobalt, the primary chemical in the manufacture of batteries.
China is helping the Central African country to develop supply chains for battery minerals, after all its mission was to extract them only, and has allocated more than a billion dollars to invest in this field, according to what was published by the Chinese “South China Mooning Post” website, Sunday..
Last week, the President of the Democratic Republic of Congo, Felix Tshisekedi, told China Media Network China Media Group (governmental), that China will establish a factory for batteries on its territory, and then they will be exported to Europe and America.
Regarding the mutual benefit between the two countries in this field, Tshisekedi pointed out that his country seeks not to export its minerals in raw form, but rather in the form of industries to increase the return from them, saying that “it is time to address the minerals extracted here to create wealth and jobs in the Democratic Republic of the Congo.”“.
Countries change their approach, and Beijing seizes the opportunity
Several mineral-rich countries in Africa have followed the same approach in the past few years, with their decision to attract investments to create industries based on these minerals at home..
Among these countries, Zimbabwe, Congo, Namibia and countries in Central Africa, and they have huge reserves, China rushed to conclude contracts with them that exceeded one billion dollars, and Zimbabwe, which has the largest untapped reserves of lithium in Africa, had the lion’s share of 600 million dollars..
A negotiating paper between Beijing and Washington
Economist Youssef Mustafa Al-Tabei points out the long-term benefit that China may reap from controlling the investments of the battery industry and mining in these minerals, namely: “China’s acquisition of these minerals may be a card for negotiating with Washington regarding supplying chip technology to Beijing”; No exchange benefit.
It is inferred that:
- Lithium and cobalt are used in the manufacture of batteries, electric cars, and solar energy panels, and China has become the largest country in the world investing in these minerals, with opportunities to seize them in Africa, as well as in Argentina and Bolivia in Latin America..
- Global demand for these minerals has increased by 600%%.
- The United States and Europe are already dependent on China now for these minerals.
Beijing suffers from restrictions imposed by Washington on several US companies to prevent them from exporting electronic chip technology, used in the industries of phones, cars, and others, to China. What prompted the latter to assign its scientists to search for ways to achieve self-sufficiency in this technology at home, in addition to searching for opportunities to impose a similar blockade on Washington in the necessary materials needed for its manufacture.
#Cobalt #exchange #chips.. #Chinese #negotiating #card #Washington