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CHINA’S INTERESTS IN AFRICA ARE BEING SHAPED BY THE RACE FOR
RENEWABLE ENERGY
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Lauren Johnston
September 2, 2024
The Conversation
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_ China is now Africa’s largest trading partner, with partnerships
focused on building roads, railways and energy projects. _
A solar power station on a mountain in Fujian Province, China.,
zhihao/GettyImages
_China-Africa relations have deepened
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past two decades, characterised by increased economic cooperation,
investment and infrastructure development. China is now Africa’s
largest trading partner
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with partnerships focused on building roads, railways and energy
projects._
_As the ninth Forum on China–Africa Cooperation
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(FOCAC) kicks off this week in Beijing, a new, green theme is shaping
their relationship: the global renewable energy race._
_We asked Lauren Johnston, a development economist with expertise in
China-Africa relations
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provide some insights into this development as it positions both
regions as key players in the global shift towards green energy._
How is the race for green energy shaping relations between China and
Africa?
The global climate crisis has created a push for renewable energy
technology – like solar or wind power – which would lessen
reliance on polluting energy sources. China saw some years ago it had
a chance to lead in such a new industry.
Africa is home to a lot of the important minerals needed to create
renewable technologies – like copper, cobalt and lithium, key
ingredients [[link removed]] in battery
manufacture.
The race for green energy is therefore leading to a rush for these
minerals in Africa, led by China, the US and Europe.
Chinese mining presence in Africa, which is much lower than western
presence
[[link removed](PRC)%20currently%20controls%20an,from%206.7%20percent%20in%202018.],
is concentrated in five countries: Guinea, Zambia, South Africa,
Zimbabwe, and the Democratic Republic of Congo (DRC).
Among them, the DRC, Zambia and Zimbabwe are the crucible of the new
green energy race in Africa. They are home to Africa’s copper belt
and the greatest store
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of lithium, copper and cobalt.
The DRC is particularly important. It has significant reserves
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of cobalt and high grade copper, as well as lithium. Cobalt is an
unusually hard metal with a high melting point and magnetic
properties. It is a key ingredient
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in lithium batteries.
More than 70%
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of the world’s cobalt is produced in the DRC and 15%-30% of that is
produced by artisanal (informal) and small-scale mining.
China is the leading foreign investor – it owns some 72% of the
DRC’s active cobalt and copper mines, including the Tenke Fungurume
Mine – the world’s
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largest copper mine and the world’s second largest cobalt mine.
China’s CMOC Group [[link removed]] is
the world’s leading
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cobalt mining company. It could produce up to 70,000 tonnes, thanks to
the new Kisanfu mine.
In 2019, the DRC and China were responsible
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for about 70% of global production of cobalt and 60% of rare earths.
Zimbabwe is another country in which China has been investing within
the context of the green energy race. Zimbabwe is home to Africa’s
largest
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lithium reserves, a critical element in electric-vehicle battery
production. In 2023 Prospect Lithium Zimbabwe, a subsidiary of Chinese
company Zhejiang Huayou Cobalt, opened a US$300 million lithium
processing plant
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It has capacity to process 4.5 million tonnes a year of hard rock
lithium into concentrate for export, against a global backdrop of some
200 million tonnes produced annually
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There are a couple of other developments on the continent that are
worth watching.
China is investing in the first mega-scale battery factory
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on the continent, in Morocco.
Chinese interests also have permission to develop the world’s
largest untapped high-grade iron ore deposit, in Guinea. Iron ore,
used in steel production, plays a crucial part in the renewable energy
sector in several ways – for instance, steel is used in wind
turbines and in mounting structures for solar panels. The agreement to
exploit the Simandou iron ore deposit
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involves various countries. China’s steel-making giant Chinalco is
among the players
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Production is due to begin in early 2026.
As China ramps up investments in these green minerals, what concerns
exist for African countries?
China’s growing control over key renewables minerals brings several
challenges to African minerals suppliers.
For African countries it generates concerns for development – many
want to add value to their minerals endowment at home rather than
export raw materials to China and then import manufactures. China has
been criticised for abandoning African interests by adding value in
China and not in Africa
[[link removed]]. Many people and
industries on the African continent lack access to reliable and
affordable energy – and local industry is keen to capture that
market.
For instance, according to the International Energy Agency
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China controls over 80% of the global manufacturing steps involved in
making solar panels. The concentration of production in China,
alongside competition, has pushed down
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global solar panel prices.
China’s solar industry is keen to close Africa’s energy gap,
providing sustainable energy to the millions that don’t have access.
For instance, at this year’s Forum on China–Africa Cooperation
gathering, China is expected to advance its Africa Solar Belt
Programme
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This is an agenda supported by the World Resources Institute which not
only seeks to use solar energy to close Africa’s energy gap, but
also to focus on powering schools and healthcare facilities with solar
too.
Some countries, like South Africa
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are pushing back by imposing tariffs on solar imports to protect their
local industries.
There are also fears that the race to renewables, and the approach of
Chinese mining-sector firms in Africa, is setting back workers’
conditions
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Expansion of mines in some countries has also led
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to forced evictions and human rights abuses.
What can African countries do differently to take advantage of
China’s mineral rush?
There are several steps they can take.
First, they can pay more attention to basic labour standards and human
rights.
Second, African firms should aim to learn from their Chinese partners.
They can develop the industrial knowledge and understanding of the
skills and capabilities needed on the continent, similar to how China
learned from Japanese, Taiwanese, Singaporean and western companies in
the past.
Third, learn from how other emerging markets manage their relations
with China. For instance, with China’s help, Indonesia has taken
control
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of the global nickel market. Indonesia started by banning nickel
exports in 2014, aiming to build up its own industries for processing
and manufacturing. This plan was supported by Chinese investments.
Lastly, what I call China’s Hunan Model
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for Africa has a focus on agriculture, mining, transport and
construction industries, and on building talent. This includes
technical and vocational training.
The more African nations position themselves to take advantage of
training programmes from other countries, the better their young
people will be prepared to drive industrial growth and economic
development in Africa.[The Conversation]
Lauren Johnston
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Associate Professor, China Studies Centre, _University of Sydney
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This article is republished from The Conversation
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the original article
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* China
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* Africa
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* Trade
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* Renewable energy
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