China’s Investments in Africa’s Mineral Wealth
China has come to dominate the African market in various sectors including more specifically the mining sector over the last two decades. China has a virtual monopoly on lithium extraction in Africa. More than four-fifths, or 83%, of Africa’s forecast lithium supply this decade will come from projects at least partly owned by Chinese firms, according to estimates by Benchmark Mineral Intelligence, a consultancy. In addition to lithium, China invested in 15 out of 17 cobalt mining operations in the Democratic Republic of Congo (DRC). One of which many linked to the Belt and Road initiative. This reflects the growth and dominance of China. Lastly, Three Chinese mining giants have acquired lithium mines and projects worth $678 million in Zimbabwe in the past year.
China Moves to Protect Battery Technology Amid Trade Tensions
China has unveiled plans to impose stricter export controls on advanced technologies related to lithium refining and battery material production, aiming to safeguard its dominance in the global supply chain. The proposed measures, outlined by the Ministry of Commerce, seek public feedback before finalisation. These restrictions are part of China’s strategy to maintain its competitive edge in the electric vehicle (EV) and battery industries amidst intensifying competition with the United States in critical sectors like minerals and semiconductors. According to analysts, these controls focus on advanced technologies, such as direct lithium extraction and high-performance cathode materials, critical for battery innovation.
Impact on Battery Companies and Investments
The proposed restrictions are causing ripple effects across the industry, with Chinese and Asian battery companies analysing potential impacts on their operations. Analysts suggest the measures might not affect current overseas projects but could limit future investments involving joint ventures or technology sharing. Lithium-iron-phosphate (LFP) cathodes, a segment where China leads global efficiency gains, are among the targeted technologies. This approach appears tailored to secure China’s position in high-end battery products without imposing sweeping restrictions. However, the policy mirrors previous export controls on rare earth metals, underlining Beijing’s push to regulate critical technologies amidst escalating trade tensions.
Broader Implications of China’s Export Strategy
China’s focus on controlling critical technology exports aligns with its recent ban on materials like gallium and germanium, which are essential for high-tech and military applications. These moves come in response to US-imposed technology curbs and highlight the growing strategic importance of supply chain security. For the battery sector, the latest proposal underscores China’s intent to retain leadership in advanced battery chemistries, especially in EV applications, while minimising the global spread of its cutting-edge innovations. Industry experts expect heightened scrutiny on technology transfers and joint ventures as Beijing continues, to assert its battery supply chain dominance. Lastly, check out this article for more details.
