Early in the 21st century China started buying up mineral and metal contracts with countries around the world. We were interested in Iraq and other national issues, and missed the boat. China now controls a huge percentage of minerals and metals that are vital to battery production. This means that they have great leverage over us, regarding the supply chain. If they decide to slow it down, they can. Let's look at what's happened in the Democratic Republic of Congo.
Since Congo locals became aware of the value of cobalt, a metal critical for advanced technologies, they have become mining it, similar to how those seeking gold in California did. The earth is soft, and cobalt can be removed with just a shovel. Locals dig it, put it in bags, and take it be weighed and analyzed as to its purity. They are being cheated, and are not given full price for their cobalt. Meanwhile, over the last 2 decades, China has been buying up most of the cobalt mines in Congo. At present, they own 15 of the 19 mines in the country. The DRC contains about 70% of the earth's cobalt resources.
Both Obama and Trump stood aside and did not try to reduce America's dependence on critical moments. China stepped up and took control. Now we need these minerals and metals to go forward with electric cars and other clean energy efforts. Nixon recognized the importance of the natural resources of Congo back in the 1970's, when he wooed Mobuto. He sent him C-130 Hercules transport, filled with $60,000 worth of Coca-Cola and gave him use of a C-130 upholstered in leopard skin for his own personal use. The deal went sour. China stepped up and bought mineral and metal rights while we were focused on other issues.
There's so much more to this story. Child labor, fraud, Chinese dominance of worldwide metals and minerals due to strategic alliances, some made years ago. But things in Congo may change. One of the largest cobalt mines is owned by China Molybdeum. A court ruling has just suspended them from control of the mine for 6 months, which may end in Americans gaining control of the mine. This would be a step in the right direction.
The whole issue of minerals and metals, so important for the future of climate control, must be examined. There is much written on the subject, which you may be interested in researching. If you know nothing else, know how important cobalt is in the production of all electric batteries, and at the present, we are dependent on China to keep it available.
No comments:
Post a Comment