China’s interests in Africa are shaped by competition for renewable energy

China-Africa relations have deepened over the past two decades, characterized by increased economic cooperation, investment and infrastructure development. China is currently Africa’s largest trading partner, with partnerships focused on building roads, railways and energy projects.

As the 9th Forum on China-Africa Cooperation (FOCAC) kicks off in Beijing this week, a new green theme is shaping their relationship: the global renewable energy race.

We asked Lauren Johnston, a development economist with expertise in China-Africa relations, to provide insights on this development as it positions both regions as key players in the global shift to green energy.

How is the competition shaping the relationship between China and Africa for green energy?

The global climate crisis has created a push for renewable energy technology – such as solar or wind energy – that reduces reliance on polluting energy sources. China saw a few years ago that it had a chance to lead in such a new industry.

Africa is home to many important minerals needed to create renewable technologies – such as copper, cobalt and lithium, key ingredients in battery manufacturing.

Therefore, the competition for green energy leads to an influx of these minerals in Africa, led by China, the United States and Europe.

China’s mining presence in Africa, which is much smaller than that of the West, is concentrated in five countries: Guinea, Zambia, South Africa, Zimbabwe, and the Democratic Republic of Congo (DRC).

Among them, the Democratic Republic of Congo, Zambia and Zimbabwe are the new competition for green energy in Africa. They are home to Africa’s copper belt and the largest reserves of lithium, copper and cobalt.

DRC is of particular importance. It has significant reserves of high grade cobalt and copper as well as lithium. Cobalt is an unusually hard metal with a high melting point and magnetic properties. It is a key element in lithium batteries.

More than 70% of the world’s cobalt is produced in the Democratic Republic of Congo, and 15-30% of it is produced through industrial (informal) and small-scale mining.

China is the largest foreign investor – it owns about 72% of DRC’s active cobalt and copper mines, including the Tenke Fungurume mine – the world’s fifth-largest copper mine and the world’s second-largest cobalt mine.

China’s CMOC Group is the world’s leading cobalt mining company. It can produce up to 70,000 tons thanks to the new Kisanfu mine.

In 2019, the Democratic Republic of Congo and China were responsible for about 70% of global cobalt production and 60% of rare earths.

Zimbabwe is another country where China has invested in green energy competition. Zimbabwe is home to Africa’s largest lithium reserves, a vital ingredient in the production of electric vehicle batteries. In 2023 Prospect Lithium Zimbabwe, a subsidiary of China’s Zhejiang Huayou Cobalt, opened a $300 million lithium processing plant. The country has the capacity to process 4.5 million tonnes of lithium hard rock per year into concentrate for export, while producing around 200 million tonnes annually.

There are a few other developments on the continent that are worth watching.

China is investing in the continent’s first large-scale battery factory, in Morocco.

Chinese interests also allow the development of the world’s largest high-grade iron ore deposits in Guinea. Iron ore, which is used in the production of steel, plays an important role in the renewable energy sector in many ways – for example, steel is used in wind turbines and in solar panel mounting structures. The contract for the operation of Simandu iron ore mine includes different countries. Chinese steel giant Chinalco is among the players. Production is scheduled to begin in early 2026.

With China’s increasing investment in these green minerals, what are the concerns for African countries?

China’s increasing control over key renewable minerals poses several challenges for African mineral suppliers.

For African countries, it raises development concerns – many want to add value to their minerals domestically, rather than exporting raw materials to China and then importing producers. China has been criticized for neglecting African interests with value added in China and not in Africa. Many people and industries on the African continent lack access to reliable and affordable energy – and local industries are eager to capture this market.

For example, according to the International Energy Agency, China controls more than 80 percent of the global production steps involved in making solar panels. The concentration of production in China, along with competition, has reduced the global price of solar panels.

China’s solar industry is eager to bridge Africa’s energy gap and provide sustainable energy to millions without access. For example, at this year’s Forum on China-Africa Cooperation, China is expected to advance its Africa Sun Belt program. It is a program supported by the World Resources Institute that not only seeks to use solar energy to reduce Africa’s energy gap, but also focuses on powering schools and health facilities using solar energy.

Some countries, such as South Africa, are pushing back by imposing tariffs on solar imports to protect their local industries.

There are also concerns that the competition for renewable energy and the approach of Chinese companies in the mining sector in Africa will push workers’ conditions back. The expansion of mines in some countries has also led to forced evictions and human rights violations.

What can African countries do differently to take advantage of China’s mineral influx?

There are several steps they can take.

First, they can pay more attention to basic labor standards and human rights.

Second, African companies should seek to learn from their Chinese partners. They can develop industrial knowledge and an understanding of the skills and capabilities needed on the continent, similar to what China has learned in the past from Japanese, Taiwanese, Singaporean and Western companies.

Third, learn from how other emerging markets manage their relationship with China. For example, with China’s help, Indonesia has taken control of the global nickel market. Indonesia began banning nickel exports in 2014 with the aim of building its own industries for processing and production. This project was supported by Chinese investment.

Finally, what I call Hunan China’s model for Africa focuses on agriculture, mining, transportation and construction industries, and talent development. This includes technical and vocational training.

The more African countries position themselves to take advantage of other countries’ educational programs, the better prepared their youth will be to drive industrial growth and economic development in Africa.