Over the past year, at least 12 African countries — including the Democratic Republic of Congo, Zimbabwe, Mozambique, and Kenya — have introduced sweeping new policies aimed at tightening state control over critical mineral resources. The measures include bans on raw ore exports, mandatory local processing requirements, state equity participation in mining projects, and restrictions on foreign involvement in mining-related industries.
Analysts say the shift is being driven by the global energy transition, which has sharply increased demand for lithium, cobalt, nickel, and rare earth minerals used in electric vehicles, energy storage, and defense industries. Many African governments now view raw mineral exports as unequal arrangements that leave most profits to foreign processors. Indonesia’s success after banning nickel ore exports has become a key reference point, demonstrating how export restrictions can help build domestic processing industries and attract foreign investment.
The African Union’s 2025 African Green Minerals Strategy further encouraged local processing and industrial upgrading. At the same time, growing geopolitical competition over critical minerals has intensified external pressure. The United States and European Union have expanded investment and infrastructure cooperation in Africa while encouraging resource diversification away from China.
The policy shift is creating major challenges for Chinese mining companies. Export restrictions, state ownership requirements, local hiring quotas, technology transfer demands, and stricter environmental regulations are increasing operational costs and disrupting supply chains. As a result, many Chinese firms are accelerating supply-chain localization in Africa by building local smelting and refining facilities. However, Chinese commentators argue that higher-value segments — such as battery-grade lithium salts, ternary precursor materials, and advanced magnetic materials — should remain concentrated in China to preserve the core technological value of the supply chain.
Source: Net Ease, June 2, 2026
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