Reports > Materials

Strategies for Securing Key Minerals in Africa to Reduce Dependence on China

2024.04.03 Sang-Hyun Seo

Sang-Hyun Seo

#Hashtag

#critical minerals #hydrogen #lithium #secondary battery
With the recent emergence of securing the supply chain for key minerals as a prominent issue, there is an urgent need for Korea's key industries, such as secondary battery and hydrogen industries, to secure essential minerals. While China has been the primary source for most materials so far, escalating geopolitical tensions between the US and China have underscored the risks. Therefore, it is imperative to establish cooperative relationships with resource-rich Africa to secure an independent supply chain for critical minerals.
Table of Contents

  • 1. Current Status and Outlook of Key Minerals in Africa

  • 2. Entry Status and Strategies of Major Countries

  • 3. Status of Cooperation between Korea and Africa on Key Minerals

  • 4. Major Risks of Entry

  • 5. Entry Strategies and Implications

Executive Summary

  • Key minerals essential for clean energy industries are concentrated in specific regions, posing risks to the supply chain due to their difficulty to replace in the short term.

    • Particularly, with most advanced countries and major nations declaring carbon neutrality by 2050, the demand for essential minerals necessary for its realization is expected to surge.

      • IEA forecasts that the demand for key minerals required to achieve carbon neutrality by 2050 will increase more than fourfold by 2040 compared to 2020, and over sixfold by 2050.

      • Africa is a major supplier region, holding over 70% of cobalt, over 90% of platinum group metals, and over 50% of manganese among key minerals globally, and also produces significant amounts of graphite, nickel, and lithium.

  • While China has been securing key minerals in Africa, the West, including the United States, has recently strengthened cooperation to counter China's dominance on Africa's key minerals.

    • (China) Seeks to dominate African key minerals such as cobalt, nickel, and lithium, making efforts to maintain and expand the supply chain from mining to processing.

    • (US) In June 2022, established the 'Minerals Security Partnership' (MSP) cooperation framework to improve the supply chain through multilateral cooperation involving Europe, Japan, Korea, and African resource-rich countries.

    • (Japan) Expedites securing key minerals through bilateral cooperation, including support for Africa and discussions with major mineral-rich countries, through the 'Tokyo International Conference on African Development' (TICAD).’

    • (EU) Strengthens cooperation with Africa to enhance the supply capacity of key minerals, diversify the supply chain, and enhance resilience for supply chain recovery.

  • Korea also strengthens activities for economic and resource cooperation with Africa, including hosting the 'Korea-Africa Summit' in June 2024 to secure key minerals.

    • Korea plans to expand ODA and utilize economic partnership agreements (EPA) through Korea-style development cooperation projects that share technology and experience with Africa.

      • In addition, high-ranking officials from the Ministry of Industry, Trade, and Resources and the Ministry of Foreign Affairs visit Africa to discuss securing mineral supply chains and expanding industrial cooperation.

  • Despite abundant key mineral deposits in Africa, various risks exist for business operations.

    • First, there are politically and socially unstable areas where conflicts, large and small, occur. Second, additional funding is needed due to inadequate basic infrastructure, such as power shortages and poor roads.

      • Therefore, it is necessary to build cooperation channels using the US-led 'Minerals Security Partnership' and utilize government official funds such as ODA for initial entry into mineral development.

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