To compete with China and secure supply chains, the U.S. needs Africa’s minerals

The United States manufacturing renaissance is at risk of failure without Africa. As demand for critical minerals surges, African nations have an opportunity to not just supply resources but also build stronger economies by positioning themselves as indispensable global players. America’s technology and defense industries will depend on its ability to double the supply of critical minerals, but many factors – domestic shortages, China geopolitics – leave U.S. businesses vulnerable. If the country does not rethink its strategy, it will fall further behind in securing the essential resources that power its economy.

Lithium, cobalt, nickel, and rare earth elements are indispensable to advanced manufacturing and AI-driven data centers. U.S. demand will double by 2030, but domestic production is insufficient. Currently, China processes 70% of the world’s supply, making American industries vulnerable to trade restrictions, geopolitics, and price fluctuations—especially as new tariffs take effect. For African economies, this presents a major opportunity to capture a larger share of the global mineral value chain, rather than simply exporting raw materials.

Africa holds the key to solving this crisis. The continent’s vast critical minerals lead the world in supply. Some companies, like Apple, have attempted to source from the DRC but faced legal and ethical challenges due to unregulated mining practices and human rights concerns. Without a structured, traceable, transparent, and scalable strategy, U.S. companies will continue to experience supply chain disruptions and higher costs. At the same time, African governments must implement policies that ensure mineral wealth benefits local economies, workers, and infrastructure development.

Global supply chains for critical minerals have been deteriorating for years due to trade wars, sanctions, and logistical bottlenecks. In addition, conflict-driven production zones and improper labor practices increase risks for companies sourcing from unstable regions. Apple’s recent challenges in the DRC underscore these risks. Rather than allowing multinational corporations to dictate the terms, African nations must push for equitable agreements that prioritize fair wages, environmental sustainability, and regional development.

These are the circumstances under which America is embarking on stronger economic and national security—and they’re nowhere near stable enough to handle the surging demand that’s barreling toward them and the world at large. In fact, the United States cannot even meet the current demand, not to mention the six-fold increase that is predicted by 2040.

The question, then, is how can American companies secure critical minerals without repeating Apple’s mistakes?

The solution starts with sourcing minerals from Africa in a way that is sustainable, transparent, and competitive. This requires integrating real-time traceability technology into procurement systems. As yet poorly understood by the market, digital traceability systems ensure that every step of sourcing and procurement is digitally accounted for by the supplier. It gives companies visibility into supply chains end-to-end. When done properly, these systems create additional transparency and build trust with consumers, investors, shareholders, and governments – a win for everyone. More importantly, such systems empower African suppliers, giving them stronger bargaining positions and direct access to global markets.

Another solution is to invest in African merchants outside of the established big business networks in Africa. These merchants are essentially multi-generation small business miners who have already adopted digital traceability to modernize their operations and reduce risks, like fraud or smuggling. But sourcing alone is not enough—value addition must happen locally. China has already taken steps to ensure that minerals like copper from Zambia and the DRC are processed locally before export, ensuring that more wealth stays within those economies.

For Africa, this is a pivotal moment. Instead of continuing to export unprocessed minerals at low margins, African countries should incentivize the development of local refineries, battery manufacturing plants, and tech-driven mining operations. The U.S. must rethink its approach—not just extracting resources, but building refining and processing hubs in Africa. This will foster economic growth while ensuring stable supply chains. Working with these merchants is also less costly than procuring through big companies that charge outrageous margins on their labor (but keep merchants poor by giving them very little of it).

For this strategy to succeed, the United States must take its partnership with Africa seriously. This means acknowledging that the continent is key to solving the critical minerals crisis and to countering China’s dominance in the sector. Once America imposes tariffs, the costs of importing critical minerals will rise significantly, affecting prices for companies and consumers. Rather than merely seeing Africa as a resource hub, the U.S. should collaborate with African nations in a way that ensures long-term economic growth, technology transfer, and regional stability.

To secure its manufacturing future, the U.S. must rethink its global supply chains. Investing in traceable, sustainable sourcing from Africa will not only counter China’s dominance but also build long-term stability for American industries. The opportunity is clear—now is the time for decisive action. At the same time, Africa must seize this opportunity to redefine its role in the global economy, ensuring that its mineral wealth translates into industrialization, infrastructure, and prosperity for its people.

Ademola is Co-founder & President, Sabi, Africa’s provider of digital commercial infrastructure for distribution of physical goods and commodities.