The Wall Street Journal (WSJ) reported on the 10th, citing sources. Sources said the two sides are discussing ways to allow Saudi state-owned companies to buy mining shares in African countries, including the Democratic Republic of Congo (DR Congo), Guinea and Namibia, and U.S. companies to purchase some of the minerals produced by Saudi companies.Core metals such as lithium and cobalt, which are needed to supply power to electric vehicles and smartphones, are highly dependent on China. Although reserves are abundant in South America and Africa, respectively, China has jumped into resource development early and has grown its influence in the refining market. Chinese companies refine about three-quarters of the world’s cobalt supply, and about 70% of the world’s lithium-ion batteries are also produced in China.The U.S. is trying to enter Africa to curb China’s dominance in the electric vehicle supply chain. However, it is not easy for U.S. companies to enter the market due to corruption of local governments in Africa. This is because he could be investigated for violating the U.S. Foreign Corruption Prevention Act (FCPA) after delivering bribes to local officials.As Saudi Arabia has long maintained an important position in the world of crude oil, it is also trying to increase its influence by actively investing in the mining world. Saudi Arabia also plans to invest more flexibly in corrupt countries and actually invest $15 billion to develop African mines. Analysts say that it can mobilize large-scale capital to attract developing countries like China. “The White House has contacted several countries, but talks with Saudi Arabia have progressed the most,” he said.
KS CHOI
US ASIA JOURNAL
