Principal Findings

US economic and national security depends on a reliable supply of critical minerals that underlie an array of products and services important to ever-changing modern economies. Yet for many critical minerals (e.g., cobalt, graphite, and manganese), the United States is heavily dependent on imports. Especially concerning is that the United States is at or near 100 percent reliant on “foreign entities of concern”—mainly the People’s Republic of China—for key critical minerals.

Global demand for many critical minerals is growing rapidly. Accelerated demand forecasts are largely based on assumptions regarding a global transition to nonfuel-based energy sources, including high-end batteries for electric vehicles and power storage. However, critical minerals are also essential to powering all manner of consumer electronics, medical supplies, and high-performance metals and engines, including those used for defense and military applications. Consequently, regardless of how market and policy factors may change the trajectory of an energy transition, demand for key critical minerals is very likely to grow as economies worldwide increasingly electrify and modernize. To avoid being shorthanded and vulnerable to export controls and potential market manipulation by geopolitical competitors, it is imperative for the United States to diversify its critical minerals supply chains.

Africa can play an important role in strengthening US critical minerals supply chain security. The United States and allied countries already depend on many critical minerals that are sourced from African countries. But increasing supply is not a simple matter. The development of natural resources on the continent has had a checkered past, and critical minerals are no exception. Ventures of the Russian-led paramilitary Wagner Group in Mali, Sudan, and elsewhere are cases in a long history of predatory mining activities in Africa. Thus, it should not be assumed that the global rush for critical minerals will be beneficial to African development and security. Here, the United States, its allies, and the private sector can play a positive role—including by offering a better alternative to an approach to extracting Africa’s critical minerals common to Chinese companies, which too often has offered little local value and has resulted in corruption and human rights abuses, including child labor exploitation. US mining and related companies could be much more engaged, however, as they remain largely absent from the continent. 

While the Biden administration and Congress have stepped up efforts to support US companies in African markets—by de-risking and otherwise supporting investments—progress is relative, and there is no indication that China and other competitors are retreating. In fact, the list of economic competitors in Africa is growing, with Gulf States and others intensifying their interest in African critical minerals. If the United States wants to remain competitive on the global stage, it must step up its efforts to diversify US critical minerals supply chains, including in Africa.  

Priority Recommendations

The study group reviewed US policy initiatives and explored key challenges, issues, and opportunities associated with meeting US critical minerals objectives, primarily with a focus on further engaging Africa and challenging China’s dominance. The group’s overarching conclusion is that the US government should act with increased speed, focus, and decisiveness to support Africans in equitably and responsibly developing critical minerals. In doing so, it should engage African countries in mutually beneficial partnerships aimed at bringing peace, prosperity, and community stability to African citizens. Forging such partnerships will not be easy, but doing so could establish the United States and its allies as Africa’s preferred partners in supporting the continent’s critical minerals development. 

Following is a list of 13 broad policy recommendations and actions developed by the study group to further US-Africa partnerships on critical minerals development and supply chain diversification:

• Sharpen US-Africa policy with a focus on critical minerals. Given their importance to US economic and national security and African economic development, critical minerals merit being a top priority for US policy toward Africa. To execute this priority, the United States should design a comprehensive critical minerals strategy that aims to build mutually beneficial partnerships with Africans.
• Empower African civil society and the media. The United States could bolster the involvement of African civil society in its efforts to build transparency and accountability in the critical minerals sector, including by providing more support for US Agency for International Development (USAID) activities and other US government programs.
• Prioritize and leverage existing USAID programs to assist Africans with rule-of-law and fiscal transparency efforts. The United States should enhance ongoing USAID efforts such as those supported through the Fiscal Transparency Innovation Fund. It could help African governments and civil society strengthen the rule of law, improve the business climate for responsible investors, and foster greater peace and community stability through better financial management of activities associated with critical minerals development.
• Tactically address Chinese mining in Africa. Although the United States is competing with China, using tactical nuance in investment decision-making could further US policy goals. Of course, all potential relationships with companies must be thoroughly vetted to ensure compliance with human rights, child labor, environmental, and other high standards and laws, but a tangential Chinese connection alone—particularly involving basic services or infrastructure—should not necessarily disqualify a US firm from receiving US government support.
• Prioritize prompt and full development of the Memorandum of Understanding (MOU) between the United States, the Democratic Republic of the Congo (DRC), and Zambia. The US-DRC-Zambia MOU should be prioritized to fully realize its potential benefits. Transforming the memorandum into a productive partnership will require a significant US effort and dedicated resources. To be most successful, the MOU will also need the full engagement and guidance of the US private sector across the battery supply chain. Commercial diplomacy can play an important role in this effort.
• Strengthen the impact of the US International Development Finance Corporation (DFC). To make the most of its tools in the African critical minerals sector, the US government should sharpen the DFC’s impact by, for example, emphasizing strategic investments that will also meet developmental priorities and increase the corporation’s presence in Africa.
• Mobilize the private sector to strengthen African infrastructure. Although budget constraints and other factors limit the United States’ ability to improve African infrastructure, tools exist to mobilize private US resources. For example, the United States could better utilize the Partnership for Global Infrastructure and Investment, DFC, Export-Import Bank, and US Trade and Development Agency to boost countries’ abilities to attract private infrastructure investment.
• Invest in commercial diplomacy. The US government should practice more vigorous commercial diplomacy with a keen eye toward building critical minerals partnerships in Africa. Increasing the physical presence of diplomatic and commercial officers in mining centers is of utmost importance. For example, the United States should reopen a consulate in the city of Lubumbashi in the DRC and better resource the US Commercial Service.
• Expand membership of the Minerals Security Partnership (MSP) to include African partners. The United States is involved in several multinational partnerships involving critical minerals, including the MSP. The MSP was established in 2022 to generate public and private investment in critical minerals production, processing, and recycling, with the ultimate goal of diversifying and securing critical minerals supply chains. Currently, no African countries are included in the MSP.
• Expand support for the Young African Leadership Initiative (YALI). The US Department of State and USAID should aggressively pursue increased private and public support for YALI—a highly competitive executive program for young Africans interested in leadership and entrepreneurial training. The program could enhance US-Africa critical minerals policy goals by better engaging US mining and engineering universities in exchange programs and the US diplomatic corps.
• Assist Africans in building technical capacity in the mining sector. The United States should partner with Africans to support local critical minerals processing. This could be done in part by helping to establish technical assistance and training centers and regional processing centers—all while being alert to counterproductive critical minerals export policies.
• Prioritize US national security interests in the context of US trade and investment policy. Policymakers should explore the extent to which US mining engagement efforts in Africa may be undercut by the Inflation Reduction Act, disincentivizing critical minerals investment and exports to the United States—exports US processing and manufacturing facilities will rely on for the foreseeable future.
• Support efforts to address artisanal mining challenges. The United States should support efforts to increase benefits for artisanal workers and limit harm from artisanal mining. Yet it should do so while recognizing that formalization and punitive measures can be counterproductive—inadvertently harming artisanal miners and their communities if not carefully managed. 

Global critical minerals markets are rapidly evolving, driven by new policies and technologies.

Africans often express a sense of urgency when discussing their major opportunity to tap natural resources and fuel positive development—as the critical minerals of today may not be critical tomorrow. Given this sense of urgency and the United States’ strong interest in furthering its engagement on the continent, the potential for critical minerals partnerships that work for both Americans and Africans is high. For these partnerships to be successful, though, much more work is needed.