KoBold metals targets Congo to counter China's mineral dominance
The mining startup KoBold Metals, supported financially by Bill Gates and Jeff Bezos, is preparing to expand its operations to the Democratic Republic of Congo. This move is intended to help the USA compete with China in the essential minerals sector needed for energy, industry, and other areas.
KoBold Metals is a startup that uses artificial intelligence to locate untapped mineral deposits. The company has announced a strong focus on the Democratic Republic of Congo (DRC), where it plans to recruit employees and acquire licenses for the exploration of lithium, copper, and cobalt, according to "Financial Times." The investment potential could reach billions.
Americans aim to challenge China's position in Congo
The company also plans to develop a substantial lithium deposit in Congo, currently embroiled in a legal dispute between Australian AVZ and Chinese Zijin Mining. This investment could evolve into a large-scale and long-term lithium mine, as stated by KoBold Metals in a letter obtained by "FT."
KoBold is a company valued at over a billion dollars, with investors including Breakthrough Energy Ventures, owned by Bill Gates, Jeff Bezos, and Michael Bloomberg.
"FT" explains that these actions align with the DRC's attempt to form a mineral agreement with the USA. These negotiations are part of Donald Trump's strategy to reduce reliance on China for metal supply.
Trump's strategy for rare earth minerals
According to Massad Boulos, Trump's new senior advisor for Africa, a path has already been laid out to establish an agreement between the US and Congo. He emphasized, as quoted by "FT," that the USA is engaged in similar discussions with countries neighbouring the DRC.
The Democratic Republic of Congo is a world leader in cobalt supply, crucial for electric car batteries, among other applications. However, as pointed out by "FT," the country faces difficulties due to rebel groups disrupting mining activities. Currently, many mines in Congo are controlled by China, and no major American company has operated there since 2016, according to "FT."
China increases control over minerals
Recall that in mid-April, China, in response to Donald Trump's tariffs, halted the export of certain rare earth minerals and magnets. These elements are vital for global industries such as automotive, semiconductor, and aerospace. A few days later, China urged South Korean companies to stop exporting products that contain Chinese rare earth metals to American defence firms.
As explained at money.pl, restrictions on rare earth metal trade serve as a significant pressure tool China can use against the USA. - China has a potent tool in its rare earth metals export and refining capabilities. It is uncertain how much further they can advance. This conflict is escalating. The question is how far Trump will go and whether America has the resolve when Beijing opts for the nuclear option, said Filip Rudnik, an analyst with the Centre for Eastern Studies, in a conversation with money.pl.
