Beijing is consistently expanding its position in global supply chains for critical raw materials and clean energy technologies. According to the Australian think tank Climate Energy Finance, the country has invested more than 120 billion US dollars in mining projects and upstream processing stages abroad since 2023. The focus is on raw materials such as lithium, copper, nickel, rare earths, and bauxite – precisely those materials that play a central role in electric vehicles, renewable energies, and industrial decarbonization.
For China, this development is part of a broad industrial policy strategy. The authors of the study refer to it as a form of state-backed “green energy statecraft.” This refers to an approach where Beijing not only aims for access to raw materials but also seeks to control as many stages of the value chain as possible – from extraction and refining to industrial use in battery and energy technologies. It is precisely this vertical integration that gives the current wave of investment particular weight, according to the study.
China Combines Raw Material Access with Industrial Value Creation
According to Climate Energy Finance, foreign investments in mining and upstream processing represent only a part of a significantly larger program. In parallel, Chinese companies have directed more than 220 billion US dollars into downstream industrial sectors since early 2023. These include battery production, electric vehicles, power grids, and solar and wind infrastructure. For China, this creates a model that does not treat raw material security and industrial manufacturing separately but organizes them as a coherent system.
The economic rationale behind this strategy is clear: whoever not only extracts raw materials but also controls their processing and industrial application gains influence over availability, prices, and technological standards. This is precisely what the study describes as a significant advantage for China. The state not only secures supply flows but also strengthens its role at the center of the global low-carbon economy.
According to the available figures, this dominance is already evident in several key areas. Climate Energy Finance estimates that China currently controls about 90 percent of global rare earth refining. In addition, it accounts for approximately 60 percent of lithium processing, more than 70 percent of cobalt refining, and over half of global steel production. China’s share in battery cathode and anode materials is also reportedly over 90 percent.
China Targets Africa, Latin America, and Southeast Asia
A large portion of China’s recent mining investments has flowed into resource-rich regions of Africa, Latin America, and Southeast Asia. In the Democratic Republic of Congo, Chinese companies have further expanded their position in copper and cobalt production. In Indonesia, Chinese-backed capital has helped make the country the world’s largest producer and processor of nickel. Zimbabwe and other African countries have also seen a rapid expansion of lithium mining and processing with Chinese support, according to the study.
Climate Energy Finance describes a change in approach. While the earlier Belt and Road phase was often criticized as extractive, the model is now evolving towards stronger cooperation with host countries. According to the study, Chinese companies are increasingly collaborating with local governments to build not only mining projects but also processing plants, railways, ports, power supply, and local industrial capacities. In return, long-term supply agreements are established.
For China, this means that raw material security and foreign economic partnership are becoming more closely intertwined. For the countries involved, this approach offers the opportunity to retain more added value domestically and to accelerate the development of their own industrial structures. It is precisely this combination of geopolitical interest and local development promise that the study sees as a significant difference from previous approaches.
China’s Model Increases Influence, But Also Dependencies
With this strategy, China not only gains access to raw materials but also the ability to shape entire supply chains. Connecting mining, processing, and industrial end-use across multiple stages allows for significantly greater influence over price dynamics, availability, and technological pathways. The study emphasizes that this development is not slowing down but continues despite changing political and economic conditions.
This precisely gives rise to growing concerns in Western states and among industrial companies. China’s increasing market power is perceived there as a risk to supply security and geopolitical stability. Consequently, counter-strategies are gaining importance. In this context, the US-led Minerals Security Partnership and the European Union’s Critical Raw Materials Act are mentioned. Both initiatives aim to diversify sources of supply and rebuild domestic processing capacities.
However, the study also makes it clear that the Chinese model cannot be replicated in the short term. China’s strength is based precisely on a hybrid form of state control, the implementation speed of private companies, and large-volume financing by state-affiliated institutions. This combination gives the country a structural advantage from the perspective of Climate Energy Finance.
China Remains a Key Factor in the Global Raw Material Race
For resource-rich states in the Global South, this development represents both an opportunity and a risk, according to the study. On the one hand, dependence on a dominant actor creates strategic vulnerability. On the other hand, Chinese capital and technical know-how enable faster development of mining, processing, and infrastructure projects – especially in emerging economies that would find it difficult to manage such investments on their own.
This paints a clear picture: China is investing not just in individual mines or factories, but in a coherent system of raw material security, processing, and industrial use. It is precisely this breadth that makes the current offensive so significant. The competition for critical minerals is thus not decided solely in mining, but along entire value chains – and China has secured a particularly strong starting position in this race.
On Goldinvest.de, interested readers will find several exciting companies that have set themselves the goal of contributing to reducing the West’s dependence on Beijing-dominated raw material markets. These include, among others, the Australian EcoGraf (WKN A2PW0M / ASX EGR), which is already well advanced with its hydrofluoric acid-free technology for the production of battery graphite (anode material) and its Epanko natural graphite project in Tanzania. More information!
Or the Canadian Ucore Rare Metals (WKN A2QJQ4 / TSXV UCU), which is explicitly working with its RapidSX technology for rare earth separation, in cooperation with the Canadian and US governments, to help build a supply chain for these strategically important raw materials that is independent of China. More information!
Not to mention the copper companies we report on at Goldinvest.de!
