China deepens African foothold in rare earth mining with billions in investments

China is tightening its grip on the rare earth elements market by expanding into African nations rich in vital minerals like cobalt, lithium, and nickel, essential for electric vehicles and renewable energy tech. But China’s investments aren’t without controversy—critics slam worker exploitation, lack of transparency, and the heavy reliance on Chinese labor instead of hiring local workers.

The goal? Strengthen China’s geopolitical power and high-tech sector. With over $152 billion in loans to African governments, mainly through infrastructure projects like roads and railways, China secures long-term mining rights. Chinese companies are also pouring billions into mining projects across Africa, aiming to ensure a steady flow of resources for its own industries and global clean energy demands.

Despite Africa’s growing mining output, China dominates the processing and refining stages, controlling most of the world’s supply. In Namibia, Chinese firm Xinfeng Investments faces corruption allegations over its Uis lithium mine acquisition. While Africa holds valuable resources, the continent faces challenges in capitalizing on them beyond raw exports, with China’s influence looming large.