The global shift towards green energy and the rise of smart technologies are fuelling a significant demand for essential minerals.
The resources are critical for manufacturing electric vehicles (EVs), batteries, and renewable energy equipment. As a result, countries worldwide are scrambling to secure mineral supplies.
Expanding Grip on Global Mineral Resources
China is aggressively strengthening its hold on key mineral resources through strategic investments in large mines across the globe.
In 2023, Chinese companies invested nearly $16 billion in mining ventures, marking the highest investment in a decade.
These efforts have significantly bolstered China’s dominance in minerals essential for the modern economy.
Focus on Copper, Lithium, and Cobalt
China has prioritized minerals like copper, lithium, and cobalt, which are vital for EVs and renewable energy technologies.
Last year, sixty percent of Chinese foreign investments targeted copper mines in countries such as Afghanistan, Ghana, and Zambia.
Simultaneously, Chinese firms expanded operations in lithium and cobalt production, crucial for EV batteries. For instance, Ganfeng Lithium broadened its operations from Argentina to Australia.
Leading Global Mineral Producers
Chinese mining companies are now among the largest producers of essential minerals globally.
Zijin Mining, with assets spanning Serbia to Suriname, matches production levels of major mining firms like BHP. Similarly, CMOC has emerged as the world’s largest cobalt producer.
These companies not only extract but also refine minerals, enhancing China’s dominance over the global supply chain.
Surge in Domestic Consumption
China is using its mineral resources to fuel domestic industries. In the first nine months of 2023 alone, China imported 12% more copper, 21% more cobalt, and 20% more bauxite.
These imports are being used to manufacture batteries, solar panels, and EVs, supporting China’s vast industrial base.
Dominance in Mineral Refinement and Manufacturing
China’s control extends beyond mining to mineral refinement.
The country supplies:
*60% of the world’s battery-grade lithium,
*65% of nickel,
*70% of cobalt, and
*90% of rare elements like neodymium.
Some companies, like Zijin, have moved further up the supply chain by producing products such as copper foil, which is integral to battery manufacturing.
Implications for Global Supply Chains
China’s dominance in mineral production and refinement translates into significant influence over global industries.
Its factories now manufacture nearly half of the world’s EVs, 80% of lithium-ion batteries, and the majority of solar panels.
This control has raised concerns in Western countries and highlights the risks of global supply chain disruptions.
As reported by msn.com, by solidifying its position in the mineral sector, China continues to shape the future of green energy and smart technology industries worldwide.
