China Has Quietly Spent $57 Billion to Control the World’s Critical Minerals

China has invested nearly $57 billion in critical mineral projects across developing countries, positioning itself to dominate key supply chains for clean energy technologies, according to a comprehensive study published this week.

The report by AidData, a research lab at William & Mary, documents China’s systematic approach to acquiring critical minerals essential for electric vehicles, solar panels, and green technologies between 2000 and 2021.

The research found that 83% of China’s investments supported mining sites partially or wholly owned by Chinese companies. These investments targeted five key minerals: copper, cobalt, lithium, nickel, and rare earth elements.

But, unlike conventional resource acquisition, China developed and employed a comprehensive financial ecosystem designed to secure long-term control of critical mineral supply chains.

Chinese state-owned banks provided strategic loans with uniquely favorable terms — structured financial instruments that enabled Chinese companies to acquire and develop mineral extraction sites in developing countries with minimal risk.

For instance, the report highlights that these loans often require Chinese companies to invest their own equity — typically 20-30% of project costs — which aligns the interests of the banks, companies, and project success. This approach ensures that Chinese firms have a genuine stake in the mineral operations, reducing the likelihood of speculative or unsustainable investments.

Most loans meet or exceed the OECD’s 25% grant element threshold for concessional lending, meaning they’re priced significantly below market rates, making it substantially easier for Chinese companies to enter and expand in mineral extraction markets where Western firms might find the upfront costs prohibitively expensive.

China has effectively lowered the barriers to entry in critical mineral markets, allowing its companies to rapidly secure critical minerals. In the Democratic Republic of Congo, for example, Chinese-controlled companies now account for approximately 51% of cobalt exports.

Source: AidData

The researchers also discovered that while China initially focused on copper and cobalt, there’s evidence that it’s increasingly pivoting towards lithium.

“A case in point is the package of loans that ICBC, China CITIC Bank, and other Chinese and non-Chinese lenders provided in 2018 to facilitate Tianqi Lithium Corporation’s acquisition of a 23.77% ownership stake in Sociedad Química y Minera de Chile S.A., one of the world’s largest producers of lithium,” they wrote. 

“This trend has continued in more recent years. In 2022 and 2023, Chinese state-owned creditors provided loans to help Chinese companies acquire the Bikita lithium mine in Zimbabwe and lithium mining rights in Argentina’s Salta province. They also bankrolled the construction of a lithium clay production plant in Mexico and a lithium-ion battery manufacturing facility in Turkey.”


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

2 Responses

  1. Meanwhile North American is left far behind….or battling amongst ourselves with tariff wars. Both Canada and the US are stuck in protectionism and fear the “communist” regime. The US thinks the whole world has somehow been picking on them, when in fact they have not been keeping up. Neither has Canada, but we don’t lash out or whine about it.

Leave a Reply

Video Articles

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

SSR Mining Q1 Earnings: Costs Continue To Climb

Recommended

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

PTX Metals Hits 235.1 Metres Of Copper, Nickel Mineralization In Longest Intercept To Date At W2

Related News

Beijing’s Gold Buying Spree Accelerates: Imports Surge 73% in April

China’s gold imports surged 73% in April to 127.5 tonnes, reaching an 11-month high as...

Friday, May 23, 2025, 10:45:00 AM

China: Growing Economic Challenges Will Strain Foreign Trade Even More

Foreign trade is slated for a rough year ahead, warns China, as unpredictable demand— coupled...

Tuesday, March 1, 2022, 03:29:00 PM

The Economist Declares China as Emerging Scientific Superpower, Challenging Western Dominance

China appears to have risen to become a scientific superpower, challenging the long-standing dominance of...

Monday, June 17, 2024, 01:20:00 PM

China’s Trade Unexpectedly Plummets Amid Weaker Global Demand

China’s glorified comeback from Covid-19 lockdowns turned out to be a lot more dismal than...

Tuesday, August 8, 2023, 04:18:00 PM

China’s Top Oil Giant Prepares Exit From Western Operations Over Sanction Risk

A major Chinese oil giant is pulling its operations out of several western regions over...

Thursday, April 14, 2022, 03:03:00 PM