The demand for critical minerals such as copper, cobalt, lithium, and nickel is experiencing a significant surge.
These raw materials are essential components in various new technologies, ranging from electric cars to wind turbines, which are gaining prominence as the world transitions towards a greener future.
Experts predict that this trend will only accelerate, with global production of cobalt, graphite, and lithium projected to increase almost sixfold by 2050, according to the World Bank.
China’s Declining Dominance in Critical Minerals Processing
Data recently released by the United Nations Conference on Trade and Development (UNCTAD) reveals that China currently controls approximately two-thirds of the world’s processing and refining capacity for critical minerals.
China’s Significant Share in Mineral Processing
While the extraction of these minerals occurs worldwide, China holds a commanding position in their processing.
It accounts for over half of the world’s refining capacity for aluminum, lithium, and cobalt, nearly 90% for rare earth metals and manganese, and a complete monopoly on natural graphite.
Additionally, China processes over a third of the world’s copper and nickel.
Emerging Competition Challenging China’s Monopoly
Despite China’s current leadership in critical minerals production, its dominance is gradually diminishing. Notably, the United States and Australia have been ramping up their production of rare earth metals since 2010.
More recently, Myanmar and Thailand have also emerged as significant players in the mining industry, contributing to the erosion of China’s previously unchallenged position.