In the context of global energy transition and technological revolution, strategic minerals such as lithium, cobalt, copper, and rare earth elements have become the "new jewels" on the geopolitical map. The United States and China — the world's two largest economies — are locked in a fierce battle to control these critical resources, sparking an unprecedented global mineral race.

1. Minerals: The "New Weapon" in the Technological Era

Strategic minerals are not only essential for heavy industries but also the "lifeblood" of emerging technologies like electric vehicle batteries, renewable energy, semiconductor production, and modern defense systems. Lithium and cobalt, for example, are indispensable components in manufacturing lithium-ion batteries — the backbone of the electric vehicle and energy storage revolution.

According to research by the International Energy Agency (IEA), demand for minerals for clean technologies is expected to quadruple by 2040. This shift has turned mineral resources into key leverage in global geopolitical competition.

2. China: The Early Mover in the Resource Race

Over the past two decades, China has quietly but aggressively expanded its dominance in the global mineral supply chain. Through its "Go Out Policy," Beijing has invested heavily in mines across Africa, South America, and Asia. Today, China controls:

Around 70% of cobalt production in the Democratic Republic of Congo, a country that supplies over 60% of the world's cobalt.

80% of the world’s rare earth processing.

A majority of global lithium refining capacity.

Chinese giants such as China Molybdenum, Zijin Mining, and Tianqi Lithium play a dominant role in the value chain, from mining to refining, making China a mineral superpower.

3. The U.S. Strikes Back: Rebuilding the Supply Chain

Concerned about dependence on China, the U.S. government is pushing forward strategies to secure domestic and allied mineral supplies. Key initiatives include:

Inflation Reduction Act (IRA): Providing major incentives for EV and battery production using minerals sourced from the U.S. or free-trade partners.

Critical Minerals Strategy: Boosting domestic mining while strengthening cooperation with Canada, Australia, Japan, and Europe.

Overseas Investments: Funding mining projects in Africa and South America through initiatives like the Partnership for Global Infrastructure and Investment (PGII).

Recently, KoBold Metals — a mining startup backed by Bill Gates and Jeff Bezos — announced plans to expand into Congo, targeting the world's largest cobalt and lithium deposits.

See more: KoBold Metals — The Mining Startup Backed by Bill Gates and Jeff Bezos Expands into Congo

4. Rising Geopolitical Tensions

The mineral race is not just about economic competition; it carries significant geopolitical implications. China's grip on critical raw materials raises fears of "resource weaponization" among the U.S. and its allies.

In 2023, China restricted exports of gallium and germanium — key materials for semiconductor manufacturing — in retaliation for U.S. tech sanctions. Analysts predict that resource weaponization tactics could escalate, deeply impacting global supply chains.

5. Other Players Enter the Race

Beyond the U.S. and China, several countries are also rushing to secure mineral resources:

Australia: Investing heavily in lithium and rare earth mining, becoming a key player in Western supply chains.

Europe: Implementing the Raw Materials Action Plan to diversify sourcing and reduce dependency on China.

Japan and South Korea: Signing mineral cooperation deals with countries in Africa and South America.

6. The Future of the Mineral Race

The race for minerals between the U.S. and China is expected to intensify as the global energy transition and digital transformation accelerate. Key factors to watch include:

U.S. mining investment strategies in Africa and South America.

China’s potential export restrictions on critical minerals.

Technological advancements in mineral recycling, aimed at reducing dependence on new extractions.

In this context, ensuring sustainable supply, building transparent value chains, and fostering international cooperation will be crucial to navigating the challenges ahead.

Conclusion

The mineral race between the U.S. and China is poised to reshape not only the future of high-tech industries but also the global geopolitical landscape. Given the pivotal role of strategic minerals in the 21st century, this competition is set to become fiercer and more defining than ever before.

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