Beijing Spends $120 Billion to Lock Down Critical Minerals Worldwide

China has invested over $120 billion in overseas mining and mineral processing projects since 2023, Australian think tank Climate Energy Finance (CEF) has reported. The investments primarily targeted lithium, copper, nickel and rare earths, critical minerals essential for clean energy and decarbonization technologies. However, whereas these investments have helped boost clean energy industries in developing countries, they have raised serious concerns, including debt risks.
Chinese firms are aggressively investing in overseas resource processing and infrastructure such as ports, rail and energy infrastructure, securing long-term resource access and controlling key supply chains while reducing China’s reliance on traditional suppliers. China is the global leader in processing key clean energy minerals, including 90% of rare earth refining, 90% of battery components and 60% of lithium processing.
China has a particularly strong presence in Africa’s minerals sector. Back in 2023, China’s CMOC Group, in partnership with Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest maker of EV batteries, completed the first phase of the Kisanfu cobalt project in the Democratic Republic of Congo (DRC), one of the world’s highest-grade copper-cobalt projects. CMOC Group Limited (formerly China Molybdenum), first gained a foothold in DRC after it acquired a majority stake of the Tenke Fungurume Mine (TFM) from Freeport-McMoRan (NYSE:FCX) in 2016. In 2025, CMOC achieved a record cobalt output of approximately 117,549 tonnes, and has set a cobalt production target of 100,000 to 120,000 tonnes in 2026. CMOC is also rapidly growing its copper production, targeting 760,000 to 820,000 tonnes in 2026. The two high-grade copper-cobalt mines have helped establish CMOC Group as the world’s largest cobalt and copper producer, surpassing Glencore.
In 2023, China’s Zhejiang Huayou Cobalt commissioned a $300 million lithium processing plant at the Arcadia mine in Zimbabwe. Operated by Huayou Cobalt’s subsidiary Prospect Lithium Zimbabwe, the plant can process 4.5 million metric tons of hard rock lithium ore annually, producing approximately 450,000 metric tons of lithium concentrate. Following the success of the initial concentrator, Huayou Cobalt expanded its operations in Zimbabwe, commissioning a second $400 million plant at the Arcadia site in 2025 dedicated to producing lithium sulphate, an intermediate product for battery manufacturing. This new facility is expected to produce in excess of 50,000 metric tons of lithium sulphate annually.
Two weeks ago, DRC's state miner Gécamines and a Chinese consortium revamped their Sino-Congolaise des Mines (Sicomines) joint venture that operates large-scale open-pit copper and cobalt mines in Lualaba Province. The JV was initially established in 2008 as a "minerals-for-infrastructure" project where Chinese investors (68% stake) finance infrastructure such as roads and hospitals in exchange for mining rights, with DRC's Gécamines holding 32%. Under a revised deal, the Chinese partners committed to investing $7 billion in DRC infrastructure through 2040.
Meanwhile, China’s CNMC (China Nonferrous Metal Mining Company) has invested heavily in Zambia’s copper belt. Back in 1998, the company acquired the Chambishi Copper Mine in Zambia, becoming the first Chinese firm to invest in Zambia's copper assets following privatization. In 2018, it launched the Southeast Ore Body, a major copper-cobalt mine expansion project with nearly $1 billion invested. The expanded facility is designed to produce approximately 100,000 to 110,000 tonnes of copper concentrate annually. The Chambishi Copper Mine mine is noted for being one of Zambia's most technologically advanced, featuring a high level of digitalization and automation through partnerships with firms like Sandvik Mining and Rock Technology.
Other major projects by Chinese firms in Africa include Sinosteel Cam’s Lobé-Kribi Iron Ore Project in Cameroon, Chinalco’s Simandou iron projects in Guinea, Jiangxi Ganfeng Lithium’s Goulamina Lithium Project in Mali and the Kamoa-Kakula Copper Complex in DRC, a JV between China’s Zijin Mining and Canada’s Ivanhoe Mines (OTCQX:IVPAF). China now owns over 70% of the DRC's active cobalt and copper mines. Additionally, Chinese firms are moving beyond extraction to local processing, including building smelters and battery plants, such as the upcoming battery factory in Morocco by China's Gotion High-Tech with a $5.6 billion investment.
China has leaned heavily on a simple playbook in Africa: build the infrastructure, secure the resources. Deals are typically struck at the government level, backed by state financing and executed by Chinese firms, with China Exim Bank often providing the funding. In return, Beijing locks in long-term supply agreements for critical minerals. The model moves fast, avoids many of the hurdles Western companies face, and fills real infrastructure gaps across developing economies.
But the trade-offs are becoming harder to ignore. Several host countries are taking on significant debt tied to these projects, with places like Djibouti and Angola already carrying heavy external debt loads linked to Chinese financing. At the same time, the economic spillover has often fallen short of expectations. Chinese operators frequently bring in their own labor and materials, limiting local job creation and slowing technology transfer. With many of these agreements negotiated behind closed doors, questions around transparency and long-term control over national resources continue to build. By Alex Kimani for Oilprice.com
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