The U.S.-DRC Critical Minerals Deal: A Lifeline for Stability and Economic Growth?

Photo by Valdhy Mbemba on Unsplash

Drawing parallels to the Petrodollar system, the United States seeks to secure essential battery metals from the Democratic Republic of Congo, aiming to counter China’s dominance and foster regional development.

Introduction

In the 1970s, the United States forged the Petrodollar system, ensuring a steady oil supply and reinforcing the dollar’s global dominance. Today, a similar opportunity arises with critical minerals — often dubbed “the new oil” — vital for technologies like electric vehicles and renewable energy. The Democratic Republic of Congo (DRC), rich in these resources, stands at a crossroads. A strategic partnership between the U.S. and the DRC could not only secure essential minerals but also promote regional stability and economic growth.

The DRC’s Abundant Mineral Wealth

The DRC is endowed with vast reserves of minerals crucial for modern technology:

• Cobalt: The DRC produces over 70% of the world’s cobalt, making it the largest supplier of this crucial component in lithium-ion batteries. Cobalt enhances battery stability and longevity, making it indispensable for electric vehicles (EVs), smartphones, and energy storage systems. As demand for EVs rises, securing cobalt supplies from the DRC will be critical for both U.S. energy independence and global decarbonization efforts.
• Copper: With significant copper deposits, the DRC is a top producer of high-grade copper, contributing to electrical infrastructure, renewable energy systems, and industrial applications. Copper is essential for wind turbines, solar panels, and EV charging stations, making it a fundamental material in the global energy transition. The DRC’s Central African Copperbelt, shared with Zambia, holds some of the world’s richest copper reserves.
• Germanium: A rare metal with critical applications in fiber optics, infrared optics, semiconductors, and military technology, Germanium is found in the DRC’s mineral-rich soils. As the world moves towards 5G, advanced computing, and high-performance communication systems, germanium’s strategic importance has increased. Given its role in defense applications, securing a stable supply is also a national security priority for the U.S..
• Nickel: Nickel is a key material in battery manufacturing, particularly in Nickel Manganese Cobalt (NMC) lithium-ion batteries, which provide higher energy density and longer lifespans for EVs. While Indonesia and the Philippines dominate global nickel production, the Kasai region of the DRC contains significant, untapped nickel reserves. However, mining operations in Kasai are limited due to poor infrastructure, lack of energy access, and logistical challenges. Strategic investment in transportation networks, processing facilities, and local workforce development could unlock Kasai’s nickel potential, diversifying global supply and reducing dependence on Asian producers.
• Lithium: The Manono Lithium and Tin Project, led by AVZ Minerals, is one of the most significant lithium discoveries in Africa, with deposits estimated to exceed 400 million tons of high-grade spodumene lithium. Located in Tanganyika Province, Manono has the potential to make the DRC a major player in the global lithium supply chain, particularly as demand for electric vehicles and renewable energy storage continues to surge. Meanwhile, Kongolo in Katanga is another promising lithium-rich area that remains largely unexplored, presenting an opportunity for further investment in exploration and infrastructure development. However, both regions face logistical challenges, inadequate transport networks, and energy shortages, which need to be addressed for large-scale production to be viable. If properly developed, the DRC’s lithium reserves — alongside its dominant cobalt and copper production — could secure the country’s place as a key supplier of battery metals for the next generation of clean energy technologies.
• 3T Minerals: The DRC is one of the world’s largest producers of tin, tantalum, and tungsten (3T minerals), which are widely used in electronics, aerospace, and military applications. These minerals are:
• Tin: Used for soldering in electronic circuits and in the production of coatings and alloys.
• Tantalum: Essential for high-performance capacitors in smartphones, laptops, and aerospace technology.
• Tungsten: A high-strength metal used in cutting tools, industrial machinery, and military armor-piercing ammunition.

Due to their use in defense, aerospace, and tech industries, 3T minerals are considered strategic materials by the U.S. government. The DRC’s 3T sector has historically been linked to conflict minerals, where illicit mining has financed armed groups. Implementing responsible sourcing programs and transparent supply chain monitoring will be critical in ensuring that these minerals contribute to sustainable development rather than fueling instability.

Global Demand and the New Energy Paradigm

As the world shifts towards sustainable energy, the demand for these minerals has surged:

• Electric Vehicles (EVs): Cobalt and copper are integral to EV batteries and motors.​
• Renewable Energy: Copper is essential for wind turbines and solar panels.​
• Electronics: Germanium is vital for semiconductors and communication devices.​

This transition positions these minerals as the backbone of the new energy economy, much like oil in the 20th century.

The Petrodollar System: A Historical Parallel

In the early 1970s, the U.S. faced economic challenges with the collapse of the Bretton Woods system. To stabilize the dollar and ensure oil supplies, the U.S. negotiated with Saudi Arabia to price oil exclusively in dollars, leading to the Petrodollar system. This arrangement bolstered the U.S. economy and cemented the dollar’s global role.

Similarities to the Proposed Minerals Partnership

The proposed U.S.-DRC minerals partnership mirrors the Petrodollar strategy:

• Resource Security: Just as the U.S. secured oil, it now seeks to ensure access to critical minerals.​
• Economic Influence: By securing these minerals, the U.S. can maintain its technological and economic leadership.​
• Geopolitical Strategy: The partnership offers a counterbalance to China’s dominance in the DRC’s mining sector.​

China’s Dominance and the Need for Diversification

China has established a strong foothold in the DRC’s mining industry:

• Investments: Chinese companies have heavily invested in cobalt and copper mines.​
• Supply Chain Control: China controls a significant portion of the global cobalt supply chain.​

This dominance poses risks to global supply chains, underscoring the need for diversification.

Europe’s Limited Engagement

Despite historical ties to Africa, Europe has lagged in investing in the DRC’s mining sector:

• Missed Opportunities: European companies have been hesitant, citing political instability and corruption.​
• Consequences: This reluctance has allowed China to fill the investment void, consolidating its influence.​

Potential Benefits of the U.S.-DRC Partnership

A strategic partnership could yield mutual benefits:

• Economic Development: U.S. investments can boost local economies, create jobs, and improve infrastructure.​
• Political Stability: Economic growth can lead to greater political stability in the DRC.​
• Global Supply Security: Diversifying sources ensures a stable supply of critical minerals for the U.S. and its allies.​

Challenges to Address

Several challenges must be navigated:

• Corruption: Implementing transparent practices is crucial to ensure that mineral wealth benefits the DRC’s populace.
• Infrastructure: Developing reliable infrastructure is essential for efficient mining operations and community development.​
• Environmental Concerns: Sustainable mining practices are vital to protect the DRC’s rich biodiversity.​

The proposed U.S.-DRC minerals partnership offers a unique opportunity to secure essential resources, promote economic growth, and enhance geopolitical stability. Drawing lessons from the Petrodollar system, this collaboration could reshape the global energy landscape, ensuring that the transition to sustainable technologies is both equitable and secure.

Honorable Mention: The Inga Dam — Powering the DRC’s Future and Securing Investments

Beyond its mineral wealth, one of the DRC’s greatest untapped assets is the Inga Dam, which has the potential to become the largest hydroelectric power project in the world. Located on the Congo River, the Grand Inga Dam project could generate up to 40,000 megawatts (MW) of electricity — more than twice the output of China’s Three Gorges Dam. If properly developed, Inga could power not only the DRC but also neighboring countries, providing clean, renewable energy across Africa.

For the U.S. and its allies, supporting the Inga Dam would not only stabilize the DRC’s energy grid but also protect their mining investments by ensuring a reliable power source for mining and industrial operations. Energy shortages are one of the biggest barriers to mining expansion, forcing companies to rely on expensive and unreliable diesel generators. With Inga fully operational, the DRC could provide stable electricity to mining hubs like Kolwezi, Manono, and Kasai, solving one of the biggest challenges facing the sector.

But such a massive infrastructure project requires strong governance and foreign investment — something only the U.S. and its partners could pull off while ensuring that corruption is minimized and local communities benefit. If the U.S.-DRC minerals deal includes Inga, it could create a long-term solution for powering mining operations, local industries, and millions of households, turning the DRC into an energy and mining powerhouse for the 21st century.