The United States (USA) is developing a comprehensive strategy to counter China’s global dominance in the critical minerals supply chain. Recently, developments such as the critical minerals agreement signed with Ukraine and discussions held in the House of Representatives concerning the Democratic Republic of the Congo (DRC) highlight Washington’s priorities in this field.[1][2] These US initiatives reflect not only economic moves aimed at bolstering the energy and technology sectors, but also long-term geopolitical moves to diminish China’s influence in the mining industry. They signal a strategic intent to break China’s monopoly over critical minerals and reduce U.S. dependency in this area.
The U.S. is currently facing significant supply challenges regarding critical minerals that are essential for the defense industry, renewable energy and technological advancement. Due to an inadequate domestic mining infrastructure and strict environmental regulations, the country has become heavily dependent on foreign suppliers. China, meanwhile, holds a dominant position in the global market, particularly in cobalt, lithium, and rare earth elements. The U.S.’s agreement with Ukraine and its growing interest in the DRC suggest a desire to play a more active role in the critical minerals supply chain. China’s dominance in cobalt mining in the DRC, and the limited U.S. access to these resources, have triggered Washington’s efforts to increase its involvement in the region. In this context, the US is accelerating its efforts to weaken China’s role in the mining sector in the country by encouraging the DRC administration to cooperate more with it.
The critical minerals agreement with Ukraine represents not only an economic partnership, but also it is a strategic move to curb China’s influence in Europe. Considering Ukraine’s substantial potential in lithium and rare earth elements, Washington is clearly acting with the intention of increasing its investments in the region. Through this agreement, the U.S. seeks to diminish China’s presence in the European critical minerals market while contributing to Ukraine’s post-war economic recovery, thereby strengthening its own strategic influence. The US appears to be acting with the aim of expanding its influence in the critical minerals supply chain in Europe. In this context, the agreement with Ukraine is considered a long-term counter-move by the US towards China.
China’s mining activities in the DRC were brought up in a hearing held in the US House of Representatives.[3] The reason of U.S. interest in the DRC is a clear ambition to challenge China’s global mining dominance. Washington plans to open DRC’s mineral resources to Western companies and undermine China’s presence in the region. In response, China is pursuing a strategy to counter the US by increasing economic incentives and strengthens partnerships with local authorities to maintain its dominance in the DRC.
The steps taken by the US regarding critical minerals through Ukraine and the DRC will have major global impacts. This process will bring the U.S.-China economic war to the mining sector and may cause increased political instability in the DRC. It is anticipated that the competition between China and the US will increase the pressure on the DRC administration and deepen the instability in the region. In response to U.S. moves, China may introduce export restrictions on critical minerals, potentially triggering price surges in global markets and accelerating the U.S.’s search for alternative suppliers. Washington is expected to deepen cooperation with countries like Australia, Canada, and nations in South America to challenge China’s dominance in mining. Meanwhile, U.S. investments in Ukraine could help transform the country into a major European hub for critical minerals in the post-war period.
In conclusion, the U.S.’s initiatives in Ukraine and the DRC represent a global counteroffensive against China’s dominance in the critical minerals. The success of this strategy will largely depend on U.S.’s ability to build resilient alternative supply chains. If the U.S. can establish a effective presence in Ukraine and the DRC, it would mark a significant step toward diminishing China’s influence in the mining sector. However, how Beijing responds to these moves will remain one of the most pivotal geopolitical questions of the coming years.
It is foreseeable that the competition between the US and China in critical minerals may evolve into a new Cold War dynamic. While U.S. investments in Ukraine and the DRC may increase the presence of Western companies in the mining sector, this could also lead to greater price volatility in global markets. If China increases its cooperation with Russia and other BRICS countries in critical minerals and the U.S.’s long-term strategy succeeds, it is expected that the supply chain balances in the global technology and energy sectors will change.
[1] “Zhao Ziwen, “US Lawmakers Urged to Stop China’s Critical Minerals Exploitation in DR Congo”, South China Morning Post, https://www.scmp.com/news/china/diplomacy/article/3303889/us-lawmakers-urged-stop-chinas-critical-minerals-exploitation-dr-congo, (Date Accessed: 26.03.2025).
[2] “Exclusive: The Full Text of the Final US-Ukraine Mineral Agreement”, Kyiv Independent, https://kyivindependent.com/exclusive-the-full-text-of-the-final-us-ukraine-mineral-agreement/, (Date Accessed: 26.03.2025).
[3] Ibid.
