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| DRC US Critical Minerals |
US Gains Access to Congo’s Copper, Cobalt, Lithium, and Manganese
The Democratic Republic of Congo (DRC) presented the US with vetted mining and processing projects for investment. This initiative targets copper, cobalt, lithium, manganese, and rare metals critical to electric vehicles, defense, and advanced electronics. Therefore, Washington moves to reduce China’s dominant 80% control of DRC’s copper and cobalt supply chains. The shortlist includes Kisenge manganese, Gecamines’ Mutoshi copper-cobalt, Cominiere lithium, and Sokimo gold projects.
Chinese companies like CMOC, Zijin, and Huayou dominate DRC mining, while US investors historically avoided it due to conflict and logistical hurdles. As a result, American capital could dilute Chinese dominance. Meanwhile, a US-brokered peace accord with Rwanda facilitates regional stability, further enabling secure investments in critical minerals projects.
Strategic Implications and Market Outlook
US metals policy enters a turning point, with analysts expecting copper, platinum, and palladium inventories to influence global pricing. However, inventory drawdowns are not guaranteed, and stocks could remain elevated, affecting metal prices. Therefore, US access to DRC’s critical minerals strengthens supply security while offering opportunities for strategic investment in recycling, processing, and alternative feedstocks.
ScrapInsight Commentary
The DRC-US critical minerals partnership enhances supply diversification and reduces Chinese leverage in copper, cobalt, and lithium markets. Scrap and recycled materials may gain importance as US investors seek secure, alternative feedstocks. Strategic inventory management will be key to stabilizing prices amid geopolitical shifts.
