Amid global efforts to diversify critical mineral supply chains away from Chinese dominance and reduce reliance on Russian resources, the United States is turning its focus to Africa, according to statements made by US Deputy Treasury Secretary Wally Adeyemo.
In an interview on Thursday, Adeyemo stated Africa’s potential to alleviate the stranglehold China holds on battery metals and decrease Russia’s influence over other mineral markets.
This arises as Western nations seek to untangle their economies from Russian and Chinese supply chains, prompted by fallout from the coronavirus pandemic and Moscow’s war in Ukraine.
“We don’t want to be overly reliant on any one country or any one company for global supply chains for critical minerals,” Adeyemo emphasized during his visit to a platinum mine in Marikana, South Africa, owned by Sibanye-Stillwater.
Acknowledging China’s decade-long efforts to secure access to minerals crucial for products like electric vehicle batteries and solar panels, Adeyemo stressed the importance of diversifying mineral sources. He noted Africa’s significant role, stating, “A lot of critical minerals are located here.”
China’s substantial investments in African mineral projects, including copper, cobalt, and lithium ventures, emphasizes the continent’s strategic importance. Adeyemo disclosed ongoing collaboration with G7 allies to address infrastructure gaps in Africa, aiming to counterbalance China’s influence.
The US government, through initiatives like the Inflation Reduction Act, seeks to boost domestic mineral production. However, Adeyemo mentioned the need for overseas resources, indicating the US International Development Finance Corporation’s efforts to de-risk private investments in Africa.
While advocating for US manufacturing incentives to bolster demand for critical minerals, Adeyemo also stressed the importance of a level playing field. He mentioned discussions with European allies about utilizing trade tools to prevent market flooding by countries like China.
Regarding Russia, Adeyemo stated South Africa’s potential to contribute to the global economy. Following the 2022 invasion of Ukraine, the US imposed sanctions on Russian miners and mineral exports, but left Russian platinum group metals largely untouched. Adeyemo urged South Africa to step up production to hold Russia accountable.
South Africa, a major palladium producer, stands to supply the global market, with companies like Sibanye-Stillwater operating in both South Africa and the US. Neal Froneman, CEO of Sibanye-Stillwater, called for US government support to ensure a stable supply chain, suggesting measures like loans or tariffs.
