Gates and Bezos-backed mining venture targets Congo amid US‑China rivalry
The mining startup KoBold Metals, financially backed by Bill Gates and Jeff Bezos, is set to expand its operations to the Democratic Republic of the Congo. This move aims to help the United States compete with China in the field of essential minerals needed in energy and industry, among other sectors.
KoBold Metals is a startup that locates untapped mineral deposits using artificial intelligence. The company has announced that it is strongly focusing on the Democratic Republic of the Congo (DRC), planning to recruit employees and acquire licences for the exploration of lithium, copper, and cobalt there, according to the "Financial Times." The investment could be worth billions of pounds.
Americans want to push China out of the Congo
Additionally, the company aims to develop a massive lithium deposit in the Congo, which is currently the subject of a legal dispute between Australian AVZ and Chinese Zijin Mining. This investment has the potential to become a large-scale and long-term lithium mine, according to KoBold Mining in a letter obtained by the "FT."
KoBold is a billion-pound valued company, with investors including Breakthrough Energy Ventures, owned by Bill Gates, Jeff Bezos, and Michael Bloomberg.
As explained by the "FT," these actions fit within the context of the DRC's attempt to form a mineral agreement with the United States. These negotiations are part of Donald Trump's plan to reduce dependence on China for metal acquisition.
Trump's plan for rare earth minerals
According to Massad Boulos, Trump's new senior adviser for Africa, a path has already been established to reach an agreement between the US and the Congo. He emphasised, as quoted by the "FT," that the United States is engaged in similar talks with neighbouring countries of the DRC.
The Democratic Republic of the Congo is a world leader in cobalt supply, used in the production of electric car batteries, among other applications. However, as the "FT" points out, the country faces challenges due to rebel groups disrupting mining activities. Currently, many mines in the Congo are controlled by China, and no major American company has operated there since 2016, as indicated by the "FT."
China tightens control on 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 are crucial for the global automotive, semiconductor, and aerospace industries. A few days later, China urged South Korean companies to stop exporting products containing Chinese rare earth metals to American defence firms.
As we explained at money.pl, restrictions on rare earth metal trade are a significant pressure tool that China can use against the United States. - China has a powerful arsenal in the form of rare earth metals export and their refinement. It is unknown to what extent they can continue to push forward. This conflict is escalating. The question is how far Trump will go and if America will have enough determination when Beijing reaches for the nuclear option, said Filip Rudnik, an analyst with the Centre for Eastern Studies, in a conversation with money.pl.
