The global shift towards green energy and the development of data centers for smart technology is driving a significant demand for minerals. China is strengthening its grip on these minerals, with Chinese companies investing heavily in large mines worldwide, thereby increasing their dominance over key resources. This situation is raising concerns not only among Western countries but also about potential impacts on the global supply chain.
Minerals play a crucial role in today’s global economy, especially in green energy and smart technology. Recognizing this, China has been strengthening its control over mineral resources. Last year, Chinese companies invested nearly USD 16 billion (around 1.3 lakh crore rupees) in global mines, marking the largest investment in the past decade. These investments include mines for copper, gold, and other minerals in countries such as Afghanistan, Ghana, and Zambia.
China’s special focus on copper
China has placed a special focus on minerals like copper, which are vital for electric vehicles (EVs) and green energy equipment. In 2023, Chinese companies invested 60 per cent of their total foreign investments in copper. Additionally, there is a growing investment from Chinese firms in minerals like lithium and cobalt, which are essential for electric vehicle batteries. For instance, Ganfeng Lithium has expanded its mineral operations from Argentina to Australia.
Chinese mining companies are now among the largest mineral producers globally. Zijin Mining, which owns mineral assets from Serbia to Suriname, is now producing at levels comparable to major mining giants like BHP. CMOC, another Chinese company, has become the world’s largest cobalt producer.
Increasing production of these minerals
China is not only increasing the production of these minerals but also using them for its domestic industries. In the first nine months of last year, China imported 12 per cent more copper, 21 per cent more cobalt, and 20 per cent more bauxite. These minerals are being used in the production of batteries, solar panels, and electric vehicles in China.
This mineral supply supports the metal production base for China’s large industries, which is far ahead of any other country. When it comes to refined minerals, China supplies about 60 per cent of the world’s battery-grade lithium, 65 per cent of nickel, 70 per cent of cobalt, and 90 per cent of rare elements like neodymium. Some Chinese mining companies have even ventured further into the supply chain, with companies like Zijin now producing copper foil. These metals are used in China’s factories, which manufacture nearly half of the world’s electric vehicles (EVs), 80% of lithium-ion batteries, and solar panels.
The article originally appeared on India.com.