How China is dominating the US when it comes to lithium, even with US mining
The lithium industry has become one of the most needed ones in the modern world, with China starting to dominate it all over the globe. This includes major investments by China into several US mining concerns, which means they profit off of the mineral of even their competitors. One of the biggest headaches comes from the fact the federal government slow rolls the companies that are trying to get US lithium up as a way to combat this. If you want US independence in these matters, then you need to be made aware of the dominance of a tyrannical government that wants to weaken this one. For that matter, we need to consider who is in charge of the government, so as to know who is hurting US industry.
China Investments into US Mining
Here, via a Google AI listing, is the list of China investments into the US lithium mining.
In essence, while China doesn't directly own lithium mines in the US in the same way it does in other parts of the world, its investments and partnerships in US lithium projects are raising concerns about national security and supply chain vulnerabilities. The US is actively working to develop its own domestic lithium industry and diversify its supply chains to address these concerns.
One example is the Thacker Pass lithium mine in Nevada, which is being developed by Lithium Americas. A major shareholder in Lithium Americas is Ganfeng Lithium, a Chinese company, which has raised concerns about Chinese control over a key US lithium resource.
In Arkansas, Standard Lithium is working on a project to extract lithium from waste brine at a bromine facility. Lanxess, the company operating the facility, has the option to buy up to 49% of the project, and Lanxess is a German company.
Yes, there really are this few sites extracting lithium in the US, with just a few other ones being worked at this time. There are other sites being considered, but the federal government is slowing the progress.
Zimbabwe Mines
Here, via Ipis Research (https://ipisresearch.be/weekly-briefing/chinese-dominance-in-zimbabwes-lithium-mines-potential-risks-vulnerabilities-and-opportunities-in-the-critical-minerals-sector/), is how dominant China is in Zimbabwe, one of the largest exporters of lithium.
According to a recent ZELA report, Chinese-owned companies have acquired the biggest portfolio of lithium mining projects in Zimbabwe. Some notable Chinese acquisitions include Arcadia Lithium Project acquired by Zhejiang Huayou Cobalt for US$ 422 million from Prospect Resources in 2021 and Bikita Lithium Mine acquired by Sinomine Resource Group (SRG). Besides acquisitions, Chinese investors Eagle Canyon International Group Holding Limited and Pacific Goal Investments have sealed a deal of US$13 billion with the Government for the construction of a ”mine to energy industrial park” to produce lithium-ion batteries. In March 2023, China Natural Resources entered into an agreement to acquire US-based Williams Minerals (Pvt) Ltd which owns lithium mining rights in Zimbabwe. While Zimbabwe needs these Chinese investments, it turns a blind eye to some of the governance factors that hinder Zimbabwe’s economic growth and benefits to communities due to poor safety standards, unsafe working condition, unfair displacement measures, environmental damage and low wages for the workers.
The Chinese strategy demonstrates no fear to seize the opportunities and occupying the risky investment space in Zimbabwe’s mining sector. Western investors on the other hand remain reluctant to work in Zimbabwe.
China’s aggressive approach in acquiring lithium mining projects matches Zimbabwe’s Look East Policy initiated by late President Mugabe which entails preferential trade relations with Asian countries, including China. With China’s growing mining, processing, refining and manufacturing capacity for energy minerals and EV batteries, Zimbabwe has become a major source market for raw materials alongside other Chinese lithium supply countries that include Chile, Argentina and Australia. Furthermore, the Chinese strategy demonstrates no fear to seize the opportunities and occupying the risky investment space in Zimbabwe’s mining sector. Western investors on the other hand remain reluctant to work in Zimbabwe and are concerned about the human rights situation. They fear sanctions, political uncertainty, security of investments and reputational risks. Recently the Australian investor of Zimbabwe’s lithium mines Prospect Resources sold its mining rights to a Chinese investor
Besides Chinese companies, Australian investors still run the Step Aside Lithium Project. The Government owns 65% of the shares of the Kuvimba Mining House that is exploring lithium at Sandawana Mine, while 35% is owned by private investors.
Perhaps the US government should start working to the benefit of the US, not China.
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