China's Africa Interests Driven By Race For Renewables

China is the leading foreign investor. It owns some 72% of the DRC's active cobalt and copper mines, including the Tenke Fungurume Mine – the world's fifth-largest copper mine and the world's second-largest cobalt mine.

China's CMOC Group is the world's leading cobalt mining company. It could produce up to 70,000 tons, thanks to the new Kisanfu mine. In 2019, the DRC and China were responsible for about 70% of global production of cobalt and 60% of rare earths.

Zimbabwe is another country in which China has been investing within the context of the green energy race. Zimbabwe is home to Africa's largest lithium reserves, a critical element in electric-vehicle battery production.

In 2023 Prospect Lithium Zimbabwe, a subsidiary of Chinese company Zhejiang Huayou Cobalt, opened a US$300 million lithium processing plant . It has capacity to process 4.5 million tons a year of hard rock lithium into concentrate for export, against a global backdrop of some 200 million tons produced annually .

There are a couple of other developments on the continent that are worth watching. China is investing in the first mega-scale battery factory on the continent, in Morocco.

Chinese interests also have permission to develop the world's largest untapped high-grade iron ore deposit, in Guinea. Iron ore, used in steel production, plays a crucial part in the renewable energy sector in several ways – for instance, steel is used in wind turbines and in mounting structures for solar panels.

The agreement to exploit the Simandou iron ore deposit involves various countries. China's steel-making giant Chinalco is among the players . Production is due to begin in early 2026.

China's growing control over key renewable minerals brings several challenges to African minerals suppliers.

For African countries it generates concerns for development – many want to add value to their minerals endowment at home rather than export raw materials to China and then import manufactures.

China has been criticized for abandoning African interests by adding value in China and not in Africa . Many people and industries on the African continent lack access to reliable and affordable energy – and local industry is keen to capture that market.

For instance, according to the International Energy Agency , China controls over 80% of the global manufacturing steps involved in making solar panels. The concentration of production in China, alongside competition, has pushed down global solar panel prices.

China's solar industry is keen to close Africa's energy gap, providing sustainable energy to the millions that don't have access. For instance, at this year's Forum on China-Africa Cooperation gathering, China is expected to advance its Africa Solar Belt Program .

This is an agenda, supported by the World Resources Institute, which seeks not only to use solar energy to close Africa's energy gap but also to focus on powering schools and healthcare facilities with solar, too.

Some countries, like South Africa , are pushing back by imposing tariffs on solar imports to protect their local industries.

There are also fears that the race to renewables and the approach of Chinese mining-sector firms in Africa are setting back workers' conditions . Expansion of mines in some countries has also led to forced evictions and human rights abuses.

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What can African countries do differently to take advantage of China's mineral rush?

There are several steps they can take. First, they can pay more attention to basic labor standards and human rights.

Second, African firms should aim to learn from their Chinese partners. They can develop the industrial knowledge and understanding of the skills and capabilities needed on the continent, similar to how China learned from Japanese, Taiwanese, Singaporean and Western companies in the past.

Third, learn from how other emerging markets manage their relations with China. For instance, with China's help, Indonesia has taken control of the global nickel market. Indonesia started by banning nickel exports in 2014, aiming to build up its own industries for processing and manufacturing. This plan was supported by Chinese investments.

Lastly, what I call China's Hunan Model for Africa has a focus on agriculture, mining, transport and construction industries and on building talent. This includes technical and vocational training.

The more African nations position themselves to take advantage of training programs from other countries, the better their young people will be prepared to drive industrial growth and economic development in Africa.

Lauren Johnston is an associate professor at the China Studies Center, University of Sydney .

This article is republished from The Conversation under a Creative Commons license. Read the original article .

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