The Democratic Republic of Congo has entered into a major agreement with the United States on critical minerals, a move that could reshape its economy while strengthening global supply chains.
A key part of the deal is the creation of a Strategic Mineral Reserve (SMR), designed to guarantee a stable and long-term supply of critical minerals, including cobalt for the United States. The agreement also gives American companies preferential access to the extraction and commercialization of these resources.
The DRC is the world’s leading producer of cobalt, a vital component used in electric vehicle batteries.
With this deal in place, Congo now finds itself at the center of competition between the world’s two largest economies. Analysts say the agreement is widely seen as an effort to limit the expansion of Chinese mining operations by offering broad political, fiscal and regulatory incentives to U.S. miners, investors and buyers.
Geraud Neema, a specialist in the political economy of natural resources and Africa editor at the China-Global South Project, weighs in on the deal. The U.S.-based organization focuses on reporting China’s engagement with countries across the Global South.
He joins the discussion to examine who stands to benefit and who may lose out under the new arrangement.
