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A new AidData report has shown that China has significantly increased its control over critical minerals essential for the global energy transition and net-zero emissions.
Over the past two decades, China has used a network of at least 26 state-backed financial institutions to dominate the supply chain for minerals such as copper, cobalt, nickel, lithium, and rare earth elements, which are crucial for emerging technologies like electric vehicle batteries and solar panels.
The database, compiled and released by AidData at the College of William & Mary in the United States, highlights how Beijing has leveraged complex financial mechanisms to secure access to these essential resources.
Between 2000 and 2021, Chinese financial institutions provided nearly US$57 billion in loans to 19 low- and middle-income countries, according to the report.
The study also draws a distinction between China’s mineral financing strategy and its flagship Belt and Road Initiative (BRI),
President Xi Jinping’s global infrastructure program. Unlike BRI loans, which are typically issued by a select group of Chinese development banks, financing for critical minerals involves a broader network of lenders.
This includes state-owned commercial banks like the Industrial and Commercial Bank of China, Bank of China, and Citic.
The report also noted that mineral lending often takes the form of serial loans, rather than one-off arrangements, indicating a long-term commitment to securing upstream resources.
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