Investing in Critical Minerals: Biden Administration Targets This African Nation

Investing in Critical Minerals: Biden Administration Targets This African Nation
Published on: Dec 8, 2024

Earlier this month, U.S. President Joe Biden visited Angola and announced an additional $600 million investment in the Lobito Corridor project. This marked his first visit to Sub-Saharan Africa as president, underlining a renewed focus by the United States on the African continent, particularly on its critical mineral supply chains.

Earlier this year, the U.S. had already invested $553 million into the Lobito Corridor. With this additional funding, U.S. investment in the project now exceeds $1.1 billion. Reports indicate that the latest funding will also support related sectors, such as agriculture, clean energy, healthcare, and digital connectivity, although the primary focus remains on advancing the Lobito Corridor’s role in facilitating the transportation of critical minerals.

The U.S. government has tied this investment to broader strategic initiatives, including the Bipartisan Infrastructure Law and the Partnership for Global Infrastructure and Investment (PGII).

The Lobito Corridor: The U.S.’s Largest Overseas Railway Project

The Lobito Corridor spans nearly 2,000 kilometers, making it the largest overseas railway investment ever undertaken by the United States. The corridor aims to accelerate the transportation of cobalt, copper, and other critical minerals. It connects the copper-rich Democratic Republic of Congo (DRC) and Zambia to Angola’s Atlantic coastline.

Once completed, the revamped railway is expected to cut shipping times to the U.S. and other markets from 45 days to roughly 45 hours. The importance of this infrastructure project is clear: it will significantly enhance the efficiency of mineral exports and is projected to boost economic activity in the region.

The Lobito Corridor offers immense potential. The DRC is the world’s fifth-largest copper producer and accounts for over 60% of global cobalt production. Zambia ranks as the fourth-largest copper producer globally and holds the second-largest cobalt reserves in Africa. Both countries also possess rich deposits of other valuable metals, such as lead and zinc, which are crucial for batteries and electronic products.

The U.S. and Africa: Collaboration Amid Competition with China

Behind the growing U.S.-Africa collaboration is increased competition with China. As part of its Belt and Road Initiative, Chinese companies have invested over $12 billion in Angola over the past decade, developing canals, railways, and other infrastructure. China also plays a dominant role in many African mining industries.

In April, the U.S. Institute of Peace’s Africa Critical Minerals Working Group stressed the need for broader U.S.-Africa cooperation to diversify U.S. mineral supply chains and reduce dependency on China. Given current geopolitical tensions, the “decoupling” between the U.S. and China in critical mineral supply chains is becoming increasingly pronounced.

On December 3, the Chinese Ministry of Commerce announced restrictions on exports of critical minerals, including gallium, germanium, and antimony—key elements used in semiconductors, military equipment, and other industrial applications. Earlier, China had also imposed restrictions on graphite exports, essential for manufacturing car batteries, as well as other rare earth metals. By banning the export of rare earth extraction and processing technologies, China aims to tighten its grip on global critical mineral supply chains.

Conclusion

The Lobito Corridor project demonstrates the United States’ effort to reposition itself in Africa, deepening engagement in the region. This new investment highlights the U.S.’s strategic intentions in critical mineral supply chains and points to Africa becoming a focal point for future international collaboration and competition.

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