(Ecofin Agency) - Though the world’s top cobalt producer, the Democratic Republic of Congo (DRC) supplies barely 1% of the refined cobalt used worldwide. The Central African country, also the world’s second-largest copper producer, has been ramping up efforts to develop its local processing industry, leveraging the interest of big countries for its subsoil.

Last week, the US government announced a $2 million grant to develop mining in the DRC. Washington will provide the grant through the US States Agency for International Development (USAID). The funds will support the expansion of a local copper and cobalt processing plant, ROK Metals, in Likasi, Katanga.

The grant will help ROK Metals increase its monthly production of copper cathodes and cobalt hydroxide to 1,150 tons and 250 tons respectively, from the current 52 tons and 28 tons. According to the USAID, the plant’s output will be exported to the USA and other markets.

“Increasing diverse and responsible investments, particularly in cobalt, copper, and other critical minerals vital for the green energy transition, provides a significant opportunity to catalyze sustainable development in the DRC,” the USAID wrote in a statement dated June 11, 2024. 

ROK Metals was chosen after a selection process carried out in collaboration with the Congolese Ministry of Mines, during the DRC Mining Week, held from June 12 to 14, 2024. 

Compared to amounts invested in the Congolese mining sector in recent years, by various partners including China, the $2 million grant is relatively small. However, the ROK Metals project illustrates the new direction of US mining strategy in Africa. This strategy focuses on bolstering local processing in African producers of metals essential to the energy transition.

The new grant is part of the $20 million Africa Trade and Investment (ATI) Critical Minerals activity. Other projects have been selected as part of this program designed to identify "innovative private sector concepts likely to rapidly generate new exports and new investments in critical minerals projects".

The ATI supports the development of local processing facilities and seeks to boost Africa’s share of the global value chain for batteries and electric vehicles.

Under this program, the U.S. inked a memorandum of understanding (MoU) with the DRC and Zambia in December 2022. This MoU is aimed at developing an integrated cross-border value chain for the production of batteries for electric vehicles in Africa's two main copper-producing countries.

The global value chain for batteries and electric vehicles is expected to reach $8800 billion by 2025. However, the continent is expected to capture only $55 billion, despite its immense reserves of cobalt, copper, and lithium, all used in the battery and electric vehicle industry.

Emiliano Tossou