Gates and Bezos-backed KoBold eyes Congo to counter China
The mining startup KoBold Metals, which is financially backed by Bill Gates and Jeff Bezos, is set to expand its operations to the Democratic Republic of Congo. This move aims to help the U.S. compete with China in acquiring essential minerals needed in energy, industry, and other sectors.
KoBold Metals is a startup that locates untapped mineral deposits using artificial intelligence. The company has announced a strong focus on the Democratic Republic of Congo (DRC), planning to recruit employees and acquire licenses for the exploration of lithium, copper, and cobalt there, according to the "Financial Times." The investment could be worth billions.
Americans want to push China out of Congo
Additionally, the company aims to develop a massive lithium deposit in Congo, which is currently the subject of a legal dispute between Australian AVZ and Chinese Zijin Mining. This investment has the potential to become a large-scale and long-term lithium mine, according to a letter from KoBold Mining obtained by "FT."
KoBold is a company valued at a billion dollars, with investors including Breakthrough Energy Ventures, owned by Bill Gates, Jeff Bezos, and Michael Bloomberg.
As explained by "FT," these actions fit within the context of the DRC's attempt to form a mineral agreement with the U.S. These negotiations are part of a plan to reduce dependence on China for metal acquisition.
Trump's plan for rare earth minerals
According to Massad Boulos, a senior advisor for Africa in the Trump administration, a path has already been established to reach an agreement between the U.S. and Congo. He emphasized, as quoted by "FT," that the U.S. is engaged in similar talks with neighboring countries of the DRC.
The Democratic Republic of Congo is a world leader in cobalt supply, used in the production of electric car batteries and other applications. However, as "FT" points out, the country faces challenges due to rebel groups disrupting mining activities. Currently, many mines in Congo are controlled by China, and no major American company has operated there since 2016, as indicated by "FT."
China tightens control on minerals
Recall that in mid-April, China, in response to U.S. tariffs, halted the export of certain rare earth minerals and magnets. These are crucial for the global automotive, semiconductor, and aerospace industries. A few days later, China urged South Korean companies to stop exporting products containing Chinese rare earth metals to American defense firms.
As explained by money.pl, restrictions on rare earth metal trade are a significant pressure tool that China can use against the U.S. China has a powerful arsenal in the form of rare earth metals export and their refinement. It's unknown to what extent they can continue these tactics. This conflict is escalating. The question is how far the U.S. will go and if America will have enough determination when Beijing reaches for the nuclear option, said Filip Rudnik, an analyst with the Center for Eastern Studies, in a conversation with money.pl.
