The United States is turning to Africa to break free from Chinese dominance in battery metals and reduce reliance on Russian minerals, US Deputy Treasury Secretary Wally Adeyemo revealed last week.
In the wake of the pandemic and Russia’s war in Ukraine, Western nations are seeking alternatives to Chinese supply chains and are looking to bolster their access to critical minerals for energy transition.
Adeyemo emphasized the importance of diversifying supply chains, acknowledging Africa’s significant role due to its abundance of critical minerals.
While the US has implemented measures to boost domestic mineral production, Adeyemo highlighted the importance of overseas resources, especially in Africa, where China has already invested heavily in key mineral projects.
Efforts are underway to bridge Africa’s infrastructure gap with the support of G7 allies, and the US is working to de-risk private investment on the continent through initiatives like the International Development Finance Corporation.
Additionally, Washington aims to stimulate demand for critical minerals through US manufacturing incentives while also considering trade actions to prevent market manipulation by countries like China.
Addressing the Russian situation, Adeyemo stressed South Africa’s potential to supply palladium, a critical mineral, which could reduce reliance on Russian imports and hold Russia accountable for its actions.
Meanwhile Sibanye-Stillwater CEO Neal Froneman emphasized the need for government support to facilitate the production and supply of critical metals, underscoring the importance of innovative measures to achieve mineral independence.
