- Chinese firms have invested US$120bn in overseas mining and processing since 2023.
- The integrated model expands into infrastructure, refining, and technology transfer.
- Africa emerges as a key theatre in lithium and iron ore development.
A new report titled ‘Raw Power China locks in global dominance of critical minerals and metals with US$120bn outbound investment surge,‘ released by the Australian think tank Climate Energy Finance, highlights a major shift in global industrial strategy driven by Chinese companies.
Since early 2023, Chinese firms have committed around US$120bn, equivalent to about A$169bn, to overseas mining and mineral processing projects. The report identifies a transition from a traditional extractive approach to a more integrated model that combines in country processing, infrastructure development such as ports, and technology transfer.
Investment is heavily concentrated in minerals critical to the net zero transition, including lithium, rare earths, nickel, copper, and iron ore. These resources are essential for clean energy technologies, battery storage, and electrification value chains.
The report underscores the expanding global footprint of Chinese investment, particularly across the Global South. Key regions include Indonesia, Chile, and multiple African markets where lithium projects are advancing. Notably, the Simandou iron ore project in Guinea is identified as a flagship development.
According to Tim Buckley, director of Climate Energy Finance, this emerging green industrial order presents a structural challenge to traditional export models such as Australia’s dig and ship economy. He notes that China is actively diversifying its supply chains, reducing reliance on established exporters.
The report also highlights China’s entrenched position across key processing segments. At present, China controls about 90% of global rare earth refining capacity, 90% of battery component production, and 60% of lithium processing, reinforcing its central role in the future energy economy.
Link to the full report HERE
Author: Bryan Groenendaal
