The increasing dominance of China over critical minerals essential for technologies such as smartphones, electric vehicles (EVs) and solar power is raising alarms in the U.S. and other Western nations.
Currently, China refines a substantial portion of the world’s critical minerals: 68% of nickel, 40% of copper, 59% of lithium, and 73% of cobalt. This dominance is accompanied by an ongoing expansion of Chinese mining operations.
Visualizing cobalt supply
A recent graphic from Visual Capitalist illustrates the total cobalt supply from the top 10 producers projected for 2030, underscoring China’s significant influence.
Cobalt is crucial for a variety of applications, including commercial, industrial, and military uses, with the EV sector now accounting for 40% of the global cobalt market.
The DRC: Cobalt powerhouse
The Democratic Republic of Congo (DRC) leads the world in cobalt production, supplying 74% of the global market. While other regions like Australia, Europe, and Asia have cobalt deposits, none match the DRC’s vast reserves.
China is the largest consumer of cobalt globally, dedicating nearly 87% of its consumption to the lithium-ion battery industry. Although Chinese firms hold stakes in only three of the top ten cobalt-producing nations, they dominate cobalt production in the DRC and Indonesia, controlling over half of the output in both countries, and 85% in Papua New Guinea.
Future projections
In light of the DRC’s significant share in global cobalt production, many Chinese companies are deepening their engagement in the country through acquisitions and partnerships with the Congolese government.
According to industry analysis by Benchmark, Chinese companies are expected to control 46% of the global cobalt mined supply by 2030, reflecting a 3% increase from 2023. By that year, the top ten cobalt-producing countries are projected to contribute 96% of the total mined supply, with the DRC and Indonesia alone accounting for 84% of the total output.
