Lithium, a key mineral in electric car batteries, has been called the “oil of the 21st century.”
The progress of a Chinese company’s lithium refining plant in Africa has made headlines recently. On March 22, Chinese battery minerals producer Huayou Cobalt announced that its Arcadia lithium mine development project in Zimbabwe had begun trial production of lithium concentrate.
Chinese companies, notably Zijin Mining and Ganfeng Lithium, have a stake in two other big African mines: Manono in the DRC and the Guolamina Mine in Mali.
Washington Pushes Back
In response to the expansion of Chinese companies in Africa, in recent years the United States has pushed for commercial investment there as a counterweight to the CCP’s influence.At the U.S.–Africa Business Forum in December of 2022, U.S. President Joe Biden announced over $15 billion in two-way trade and investment commitments, deals, and partnerships that advance key priorities, including sustainable energy, health systems, agribusiness, digital connectivity, infrastructure, and finance.
Further, during her visit to Africa in late March, U.S. Vice President Kamala Harris announced U.S. plans to invest hundreds of millions of dollars in the continent.
In key mining areas, companies from the United States and its allies are also taking action.
In December of 2022, KoBold Metals, a business start-up backed by billionaires Jeff Bezos and Bill Gates, announced that it would invest $150 million for a controlling stake in a large, undeveloped copper mine in Zambia. The deal was seen as a new push by the U.S. government to secure critical minerals in Africa. The announcement was made at the U.S.–Africa Leaders Summit in Washington.
Primitive Conditions, Chaotic Business Environment
Senior Chinese industry figures, speaking at the third annual Global Lithium Conference in late March, addressed the issues facing Chinese companies in Africa, where spodumene deposits—along with those in North America—are growth drivers for the global lithium supply.The lithium-rich continent presents opportunities because the competitive landscape is still in its infancy compared with Europe and North America, where investment patterns are relatively fixed. However, it is not easy for Chinese companies to develop lithium due to the limited conditions and chaotic political and business environment there.
Processing lithium-bearing minerals is complicated, and the recovery rate is low, Fu Xiaofang, a senior engineer at the Sichuan Provincial Geological Survey Institute, said at the conference.
Africa’s lithium deposits are dispersed, with a large proportion of small mines. Working conditions in Africa’s many small “chicken coop mines” are often primitive, with workers even using tools like crowbars and hammers. Moreover, the extraction and processing of the minerals have significant environmental effects, involving toxic chemicals that can cause contamination and pollution.
Even in Nigeria, which is said to be friendly to China, attacks on Chinese citizens “have become regular occurrences in recent years amid the country’s many conflicts,” according to an April 15 article in British newspaper The Times, noting that Chinese firms must constantly negotiate with terrorists and bandits.
Further, mining conflicts are rampant. More than 5,000 people have been killed in Nigeria’s Zamfara state in the past five years due to mining conflicts, in which local military, gangs, and other forces are intertwined.