![[Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years](https://theafricanbusiness.com/wp-content/uploads/2023/02/TALA-APP-360x180.jpg "[Kenya] Digital credit provider Tala disbursed Sh240 billion in loans in eight years 19")
The rising demand for raw materials for e-mobility has given the Democratic Republic of Congo (DRC) newfound negotiation power, as Europe struggles to secure supplies.
The search for raw materials for e-mobility has brought the DRC into the global spotlight due to its rich mineral resources, particularly copper and cobalt.
Near the mining city of Kolwezi, 7,000 kilometers south of the capital, Paul Zagabe Banze is found at a copper and cobalt mine.
In his hands, he holds two pieces of cobalt. The work here is done manually. Zagabe and other miners are unaware of the uses for copper and cobalt. “The white people buy it. We sell it, but we don’t know what they do with it,” he says.
Cobalt is a mineral used in the production of batteries for phones, computers, and electric vehicles.
Two-Thirds of Global Cobalt Production
Currently, the Democratic Republic of Congo accounts for more than two-thirds of the world’s cobalt production. Europe is seeking this resource to fuel its industry.
French Member of the European Parliament Marie-Pierre Vedrenne, from the liberal Renew Europe group, advocates for a joint supply strategy. “France, Germany, and the entire European Union (EU) must act together to create a secure and sustainable supply chain for Europe.”
Although most of the world’s cobalt reserves are located in Congo, Cecilia Trasi, an energy and climate analyst at the European think tank Bruegel, explains that “three-quarters are processed in China. So, if we want to use cobalt, we have to turn to China.”
Cecilia Trasi adds that China controls the entire value chain of raw materials, from extraction, refining, and transformation to recycling.
The extraction methods China uses in Congo do not create local added value, says MEP Marie-Pierre.
This fosters distrust toward anyone interested in exploiting the country’s resources, says Simon Tuma Waku.
“This is what’s happening now. All these African countries are saying: you now need to consider our desires. Even if you help us, give us money, or whatever: do not impose what you think is best for us,” he says.
Efforts to Regulate the Industry
The DRC is making significant strides. During the reign of Joseph Kabila, the predecessor of current President Félix Tshisekedi, efforts to regulate the mining industry increased, explains Tuma Waku.
“We decided to privatize the mining sector to save it from decline because the state wasn’t generating significant profits,” he recalls.
Europe wants to remain an important player in Congo by building new roads and power lines to connect the mining city of Kolwezi to Lobito, Angola.
Jutta Urpilainen, former EU Commissioner for International Partnerships, justifies this investment. “It’s important to understand that the world we live in is increasingly interconnected. What happens in Africa also impacts our lives in Europe,” she says.
Jutta also emphasizes the importance for Europe to “invest in development cooperation, continue to lead in climate financing, human development, and global investment.”
