Brookings Urges U.S.-Africa Critical Minerals Strategy as China Holds Processing Advantage

Highlights

• Africa holds roughly 30% of global critical-mineral reserves, making it a key battleground in the U.S.-China competition for supply chains.
• China dominates processing of rare earths (92%), cobalt (80%), lithium (71%), and graphite (96%), giving it enormous leverage over global supply.
• Brookings recommends the U.S. mobilize loans, grants, offtake agreements, political-risk insurance, and technical assistance to compete.
• African nations are demanding local processing and value addition, not just ore exports, reshaping what a winning partnership must look like.
• Authors argue America's offer must shift from extracting minerals to building industrial ecosystems alongside African partners.

A new Brookings Institution report (opens in a new tab) argues Washington needs a coherent U.S.-Africa critical minerals investment strategy, not scattered projects. Africa is estimated to hold roughly 30% of global critical-mineral reserves, while China dominates processing across rare earths, cobalt, lithium, and graphite. Brookings wants America to mobilize private capital, government finance, and technology while helping African nations build processing industries—not merely export ore.

REEx Insight: America Has to Bring a Better Offer

Great Powers Era 2.0 has arrived in Africa. China spent decades financing mines, infrastructure, and processing relationships. Brookings cites estimates of $8–10 billion in Chinese critical-mineral investment in Africa during 2023 versus roughly $300 million from the U.S. Washington cannot rewind that history. But strategically, it has little choice but to outcompete China's proposition—with faster capital, better technology, infrastructure, transparent partnerships, and access to Western markets.

Rocks Aren't Enough

Authors Dafe Oputu and Landry Signé identify loans, grants, offtake and stockpiling, political-risk insurance, equity, and technical assistance as America's arsenal. The report recommends prioritizing rare earths, cobalt, lithium, and graphite, citing Chinese processing shares of 92%, 80%, 71%, and 96%, respectively.

But Africa increasingly wants what China itself learned decades ago: the real money and power lie farther downstream. Brookings recognizes African governments' growing insistence on local processing and value addition.

That changes the contest. America's winning offer cannot be give us your minerals. It must increasingly become: let's build the industrial ecosystem together.

In Great Powers Era 2.0, Africa is not simply a source of critical minerals. It is becoming one of the arenas where the next global mineral order will be decided.

REEx Note: Reserve and market-share figures are estimates cited by Brookings. Recommendations are the authors' analysis, not official U.S. policy.