Can Critical Minerals Reshape the future of Energy?
Mr. Choeib Boutamine
April 27, 2025
Critical minerals are shaping the future of energy, serving as additional pillars alongside oil and gas. Currently, over half of global energy consumption comes from oil and gas, particularly in sectors such as shipping, petrochemicals, and aviation, where there are no viable alternatives to fossil fuels.
As the world navigates the energy transition and digital economy, critical minerals like lithium, copper, and nickel are becoming increasingly essential. These minerals are vital for powering electric vehicle batteries, smartphones, data centers, and wind turbines, leading to a significant rise in mineral demand.
However, regions rich in these minerals, such as Africa and South America, capture only 4 to 20 percent of the value derived from them. The majority of real profit is generated through downstream manufacturing and assembly processes, highlighting an imbalance in the value chain.
China’s strategic investments in mining and refining of critical minerals have significantly enhanced its influence in this sector. Currently, China accounts for 60 percent of global lithium refining and 90 percent of rare earth processing, giving it a competitive edge in producing electric vehicles and solar panels at lower prices compared to its competitors.
Since the year 2000, China has invested about 50 billion USD into its mineral supply chain, encompassing mining, refining, and battery manufacturing. This early and focused investment has allowed China to position itself as a leader in critical minerals, vital for the transition to cleaner energy sources.
Furthermore, the ethical dimensions of sustainable development play a key role in shaping the industry, as any act of child labor or workers’ negligence hampers the goal of sustainability.
Africa possesses valuable mineral resources. Instead of exporting raw materials, attracting technology companies to invest locally in refining, manufacturing, and building data centers is crucial for wealth creation.
Namibia and Zimbabwe’s recent bans on lithium exports encourage such investments.
Solar-powered data centers are emerging in Africa, as exemplified by South Africa. Initiatives like the African Energy Bank can help address the continent’s financing needs.
Successful partnerships, long-term vision, and equitable agreements should be the ground for African-Western cooperation in the minerals sector.
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