The German government earmarked about €1 billion ($1.1 billion) for raw materials investments as it seeks to reduce dependency on producers such as China for critical minerals, according to people familiar with the plan…A selection process will be established to determine which projects — including in extraction, processing and recycling materials — are eligible, the people said, speaking on condition of anonymity. Financing, via Germany’s state-owned KfW development bank, will consist of equity capital to make acquisitions of minority stakes…Projects in Germany and abroad will “contribute to the security of supply of critical raw materials,” an Economy Ministry spokeswoman said. The ministry didn’t give details on how the state fund would be structured…Pandemic-triggered supply-chain disruptions across the globe and Russia’s invasion of Ukraine exposed the vulnerability of Europe’s reliance on energy and raw materials for high-tech and green projects. Chancellor Olaf Scholz’s government pledged to ratchet up efforts to access to critical materials over the longer term. Raw materials including cobalt, copper, lithium, silicon and rare earth metals are needed to make microchips, wind turbines and batteries for electric vehicles.

The Democratic Republic of Congo (DRC) boasts vast reserves of cobalt, tantalum, tin, and tungsten – minerals crucial for electronics and batteries — and has received a significant Chinese investment. The average electric vehicle battery requires more than 13 kg of cobalt, and a mobile phone battery is about 7g. Demand for cobalt is expected to reach 222,000 tons by 2025, having tripled since 2010…On Jan. 27, China and the Democratic Republic of Congo recently reelected President Felix Tshisekedi reached a new $7 billion deal in financing as part of a renegotiated minerals-for-infrastructure…Pressure on the electronics supply chain to responsibly source raw materials has been growing for more than a decade and laws banning forced labor are now being actively enforced in many countries. Yet China, which is known for its own for its own human rights abuses, is strengthening its position in the already-troubled DRC…. On the one hand, China has become the region’s largest trading partner, investing heavily in infrastructure development, mining, and resource extraction…However, concerns grow beneath the surface. Opaque contracts and a lack of negotiation transparency raise concerns about exploitation and unequal benefit distribution…Many issues have arisen about the working conditions in some Chinese-backed mines. The use of artisanal miners, including children, in hazardous environments raises serious human rights concerns. The allegations of unfair labor practices and environmental damage shadowed China’s involvement in the region…Looking ahead, navigating the complexities of China’s involvement in Central Africa requires a multifaceted approach. While acknowledging the potential economic benefits, robust measures are crucial to ensure transparency, accountability, and adherence to human rights and environmental standards. Collaboration between African governments, China, and the international community is vital to fostering a sustainable and equitable development model for the region.

Several African heads of state, mining ministers and political institutions today called for the continent to shift towards processing minerals into higher-value products instead of shipping mined raw material…South African president Cyril Ramaphosa told delegates at Cape Town's Mining Indaba conference 2024 that Africa must not export "rock and dust and soil", and should instead focus on benefiting from the raw materials key to the global energy transition…"Africa has the potential to be the fulcrum of the global energy transition, with mining at its core," Ramaphosa said…A number of countries have already taken steps to beneficiate some products, such as lithium and cobalt. In the Democratic Republic of Congo (DRC), concentrators are already in place for copper and cobalt, and some companies are seeking to do the same with lithium ores produced in the country…Leaders today pointed towards specific products, such as cobalt, lithium, nickel, manganese and graphite, as key targets for value creation…So far, three African countries, including Ghana, have introduced some form of export controls on lithium ores. The bans are similar to those in Indonesia, which banned nickel ore exports in 2020, attracting a wave of investment to the country…The roadmap set out by Indonesia may be inspiring some African leaders to explore the same tactics.