Building Stronger US-Africa Partnerships for Mineral Security

author: FutureCar Staff    

The next industrial revolution will be anchored in critical and rare-earth minerals, which are essential for many modern technologies. These minerals are strategic materials, particularly in defense-related technologies. Semiconductors, flash memory, fiber optics, satellites, CAT scan equipment, electric vehicle batteries, and smartphones all rely on these minerals. Countries such as the Democratic Republic of Congo (DRC), Zimbabwe, South Africa, Nigeria, Ghana, and Namibia play a crucial role in the production of these technologies.

African countries are vital for the supply of critical and rare-earth minerals in various sectors, including industrial, consumer, and defense. To ensure consistent access to these minerals and the technologies they enable, the United States and private-sector companies should consider collaborative partnerships with African countries. This approach follows the example set by Western countries in the 1970s and 1980s with Southeast Asia.

Semiconductors and flash memory products are essential components of modern technology, both in civil and defense applications. They power devices like smartphones and self-driving cars and are becoming increasingly important. The new F-35 Lightning stealth fighter, for example, contains numerous semiconductors and flash memory chips, as well as a significant quantity of strategic materials. Additionally, future technologies like quantum computing will require substantial amounts of critical minerals, including gold.

However, the production of semiconductors and quantum computers relies on critical and rare-earth minerals. These minerals, such as scandium, yttrium, lanthanum, and cerium, are used in various industries, including automotive, consumer electronics, computers, communications, clean energy, electric vehicles, and defense systems. Without these materials, supply chains for consumer electronics would be severely impacted. Unfortunately, the processing of these critical minerals is concentrated in a few countries, primarily China and Russia. This concentration poses significant risks to global supply chains for semiconductors and electric vehicles.

China currently dominates the global market for critical minerals, including imports from Africa. The country has invested billions in Africa as part of its Digital China strategy, gaining a significant foothold on the continent. The United States has suffered setbacks, with US companies losing control of mines in the DRC to Chinese counterparts. China and Russia are taking advantage of the soaring demand for critical minerals, leveraging political influence, governance challenges, and cheap labor to their advantage. Russia has even deployed mercenaries to safeguard mineral resources, including illegal mining operations.

To diversify global supply chains and reduce dependence on a single nation or region, Western countries should encourage private-sector research and development in African countries. Africa holds substantial reserves of critical minerals, including manganese, platinum, chromium, cobalt, graphite, and copper. However, exploration budgets in Sub-Saharan Africa have historically been low. By incentivizing collaborative partnerships and supporting trading opportunities, the United States can secure vital resources for its supply chains and national security efforts.

African countries can play a crucial role in supporting the manufacturing of semiconductors, flash memory, and consumer electronics. Governments in the West and private-sector stakeholders should collaborate to identify alternative sources for their supply chains and reduce dependency on a single country like China. Initiatives like the European Union's European Chips Act and the United States' CHIPS and Science Act offer opportunities for collaboration with democratic nations worldwide. African countries can leverage these laws to develop their own legislation, frameworks, and supplier networks to support value addition and production on the continent.

The Biden administration has already taken steps to engage African countries, with Vice President Kamala Harris announcing support for a critical minerals processing facility in Tanzania. Other countries like Japan and the United Kingdom have also expressed interest in critical minerals investments in Africa. However, more decisive action is necessary to counter China's dominance in Africa's critical minerals sector.

A successful model to emulate is the development of consumer electronics in Southeast Asian countries in the 1970s and 1980s. Multinational companies from the United States, Japan, and other Western nations played a significant role in supporting these countries' ventures. They established manufacturing hubs, research and development centers, and benefited from highly educated labor forces and favorable political support. Western countries should incentivize their multinationals to pursue a similar strategy with African countries today. By focusing on manufacturing, chip design, quality control, and research and development, Western companies can extend their supply chains to Africa and capitalize on China's shortcomings.

However, there are complexities to consider. China's lack of governance conditions and the debt burden of its loans have generated controversy both within Africa and internationally. Western countries must recognize the need to reduce dependence on China for critical minerals and act swiftly. By providing serious backing for manufacturing, research and development, and design in African countries, Western countries can deepen their collaboration and secure their supply chains.

Africa should be recognized as a crucial partner in shaping the next century, and the United States and other Western countries should prioritize economic cooperation with African countries to achieve this goal.

FutureCar Staff