China’s Dominance in Critical Minerals: A Closer Look at Lithium, Copper, and Nickel
China’s strategic investments in critical minerals have positioned the country as a global leader in clean energy technologies. With a strong focus on lithium, copper, and nickel, China has secured control over the supply chain of these essential resources, creating a dominant position in the market.
China’s dominance in lithium production and processing has been a key factor in its rise as the largest investor in clean energy technologies worldwide. The country boasts the world’s largest installed capacity of wind and solar PV energy and is expected to produce nearly 6,000 TWh of electricity from non-fossil fuels by 2030.
To strengthen its position, China has been investing heavily in regions rich in critical minerals, such as Africa and South America. By securing contracts and investing in projects in countries like the Democratic Republic of the Congo, Zambia, Ghana, Bolivia, Argentina, and Chile, China has solidified its access to key resources.
In the copper market, China is the largest refiner, accounting for a forecasted 46% of the market by 2030. With investments in major copper-producing countries like Chile, Peru, and the DRC, China’s control over the supply chain is evident.
Nickel is another critical mineral where China has made significant investments, particularly in Indonesia. Through projects with companies like GEM, Lygend Mining, Huayou, and Zhejiang Huayou Cobalt, China has established a strong presence in the nickel market, disrupting prices and creating a cheap source of battery raw materials.
While China’s investments in critical minerals have propelled the country to the forefront of the clean energy revolution, the environmental and geopolitical implications of its dominance should be closely monitored. As China continues to expand its footprint in the global market, the balance of power in the critical minerals sector may undergo significant changes in the coming years.
