author: FutureCar Staff
The next industrial revolution will be anchored in critical and rare-earth minerals, which are essential for most modern technologies, especially those related to defense. These minerals are strategic materials that play a crucial role in the production of semiconductors, flash memory, fiber optics, satellites, CAT scan equipment, electric vehicle batteries, and smartphones. Without these minerals, these technologies would not exist in the numbers they do today. Countries such as the Democratic Republic of Congo (DRC), Zimbabwe, South Africa, Nigeria, Ghana, and Namibia are particularly important in the supply of these minerals.
African countries hold significant reserves of critical and rare-earth minerals that are vital for the industrial, consumer, and defense sectors. To ensure sufficient access to these minerals and the technologies they enable, it is crucial for the United States and private-sector companies to recognize the potential in collaborative partnerships with African countries. Following the example of Western countries’ partnerships with Southeast Asia in the 1970s and 1980s, these collaborations can be mutually beneficial.
Semiconductors and flash memory products are essential components of modern technology, powering devices such as smartphones and self-driving cars. These technologies rely on critical and rare-earth minerals, including elements like scandium, yttrium, lanthanum, and cerium. These minerals are used in various industries, including automotive, consumer electronics, clean energy, and defense. The concentration of mineral processing in a few countries, such as China and Russia, poses significant supply-chain risks that could disrupt global semiconductor and electric vehicle supply chains.
China currently dominates the global market for critical minerals, including imports from Africa. The country has made significant investments in African countries, particularly to support its Digital China strategy. This has resulted in the loss of US financial and diplomatic investments in the DRC, where China now controls most of the cobalt mines. Russia has also capitalized on the soaring demand for critical minerals, employing mercenaries to guard mineral resources, including illegal mining operations.
To secure vital resources for Western supply chains and national security, the United States should incentivize and strengthen collaborative private-sector partnerships with African countries that share democratic and rule-of-law values. This can be done by facilitating new trading opportunities and business partnerships. Additionally, African countries can leverage initiatives like the African Continental Free Trade Area (AfCFTA) to support semiconductor, flash memory, and consumer electronics supply chains.
African countries possess significant reserves of rare earths that can support the manufacturing of semiconductors, flash memory, and consumer electronics. Western governments and private sector stakeholders should collaborate to identify alternative sources for their supply chains and reduce dependency on a single country. By focusing on manufacturing, chip design, quality control, and research and development (R&D), Western companies can extend their supply chains to African countries. Some companies, such as Google, Microsoft, and IBM, have already established R&D labs in African countries.
Western countries can gain an advantage over China by capitalizing on the shortcomings in Chinese investment and offering a more attractive partnership model to African countries. However, there are complexities involved, including governance conditions and debt burdens associated with Chinese investments on the continent.
The United States needs to reduce its dependence on China for critical minerals and strengthen its economic cooperation with African countries. This requires serious backing for manufacturing, R&D, and design partnerships. By recognizing Africa as a crucial partner, the United States and other Western countries can secure their supply chains and shape the next century.
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