China continues to gain ground in DRC

The signing of a Memorandum of Understanding between the United States (US) and Zambia and the Democratic Republic of the Congo (DRC) to jointly develop a supply chain for electric vehicle batteries holds major potential for these two countries.The DRC produces more than 70% of the world’s cobalt. Zambia is the world’s sixth-largest copper producer and the second-largest cobalt producer in Africa. These resources, and this commitment to cooperation, are crucial components of the urgently needed global energy transition. According to a spokesman for the US Department of State, the plan to develop an electric battery supply chain opens the door for open and transparent investment to build value-added and sustainable industries in Africa. Analysts told Freight Newsit was unclear in which of the two countries an electric vehicle battery facility would be set up, if not both. “Both Zambia and the DRC are high on the agenda of most countries, who are all furiously knocking on the door to secure battery and other strategic minerals,” said Duncan Bonnett, a partner at Africa House.In July, the United Arab Emirates announced it had signed a $1.9-billion deal with a state mining company in the DRC to develop at least four mines in the east of the country.China is also continuing to gain ground in the DRC where it is still the largest source of foreign investment.