1. Material world: How Europe can compete with China in the race for Africa’s critical minerals
- Author:
- Sarah Logan
- Publication Date:
- 11-2024
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- In the last two decades, China has come to dominate global supply chains for critical raw materials and the green energy and other technologies they enable. This increases competition and economic risks for Europe. In an effort to build CRM supply chains insulated from China, the EU has signed strategic partnerships with several politically friendly countries around the world, including in Africa. However, the EU will only realise its de-risking ambitions if the European private sector invests in CRM supply chains in partner countries in Africa and elsewhere. Yet the incentives for European companies to enter mining and processing operations in these markets are too weak. The example of Namibia shows that the EU’s strategic partnership with the country has borne little fruit – and may even be benefitting Chinese firms at European expense. To address this, the EU must enhance support to European companies to invest in securing access to critical raw materials. This should include new financial incentives and measures to protect against China manipulating prices on international markets.
- Topic:
- Foreign Policy, European Union, Strategic Competition, Supply Chains, Strategic Partnerships, and Critical Minerals
- Political Geography:
- Africa, China, Europe, Asia, and Namibia