Businesses from the U.S., Japan and Europe are moving to tap mineral reserves in Central Africa, using the latest technologies to locate critical electric vehicle materials, as China currently dominates development on the continent.

The so-called Copperbelt spans across the border of Zambia and the Democratic Republic of the Congo, and is one of the world’s leading mining regions. Copper and cobalt, also found in the region, are used to make EV batteries.

Zambia produces nearly 800,000 tonnes of copper ore a year, making it the world’s ninth-largest supplier of the metal. Copper is responsible for over 10% of the country’s gross domestic product.

In a recent interview with Nikkei, Paul Kabuswe, Zambia’s minister of mines and minerals development, said his country aims to lift annual production to “3 million tonnes by 2031.”

Kabuswe noted a “very high demand” globally for copper, cobalt, lithium and manganese. International copper prices reached all-time highs in May.

“We must be able to maximize the benefit to our economy,” he said.

Business from around the world are now racing to invest in Zambia. U.S.-based KoBold Metals has discovered large deposits of copper in northern Zambia, and aims to start production there within eight years.

Backed by Bill Gates and Jeff Bezos, the startup uses artificial intelligence to detect mineral deposits based on soil samples, magnetic data and more. It expects the new project to be similar in scale to the Kakula copper mine, one of the world’s largest, located across the border in the DRC.

“We remain focused not on what we will do for Zambia as a donor, but what we will do with Zambia as a partner invested in Zambia’s success,” U.S. ambassador to Zambia Michael Gonzales said during a 2023 visit to the project site.

Canada’s First Quantum Minerals is investing $1.25 billion to expand its Kansanshi mine in northern Zambia. The company aims to expand copper ore output there up to 210,000 tonnes by 2026 from 135,000 tonnes in 2023.

First Quantum has been embroiled in a contractual dispute over its major copper mine in Panama, stoking Africa’s importance to the company.

China currently plays an outsize role in copper supply chains. It held nearly half the world’s refining capacity as of 2023, according to the International Energy Agency. In 2021, roughly 70% of Zambia’s copper ore output was shipped to China.

China Nonferrous Mining Corp. (CNMC) is planning to make $1.3 billion in additional investments in Zambia over five years, while Jiangxi Copper, a leading refining company, has signed a $500 million agreement to receive copper shipments from First Quantum.

Amid protracted tensions between Washington and Beijing, the U.S., Europe and Japan worry about the economic security risks posed by China’s dominance in the field.

“Every country is welcome to Zambia,” Kabuswe said, adding that it is important for the country to form “good relationships” with all potential markets. It is not about comparing investments from different countries, be it China, Japan or the U.S., he said.

The Japan Organization for Metals and Energy Security (JOGMEC) conducts satellite image analysis, and plans to expand the area covered by its geological surveys. It will work together with the U.K., which recently agreed to promote public-private investment in Zambia.

JOGMEC will also work closely with the DRC, promoting environmental, social and governance investments in the country in response to international criticism over the use of child labor in its mines.

Infrastructure to transport minerals out of the landlocked Copperbelt is also critical.

The U.S. and European Union are jointly backing the development of the Lobito Corridor, a rail link connecting Zambia and the DRC to Angola’s Lobito Port. In addition to updating existing facilities, the initiative will build a new rail section and expand transportation capacity.

Japan signaled its support for the project as well during an April summit with the U.S.

Canada’s Ivanhoe Mines in December transported 10,000 tonnes of copper ore from a DRC mine on the Lobito rail corridor. It aims to boost annual shipments to up to 240,000 tonnes.

The company until now typically trucked the ore to ports in South Africa and Tanzania. Transporting it by rail to the Atlantic coast instead is expected to reduce costs for U.S. and European shipments.

Still, concern over Zambia’s economy could hamper international investments. Zambia defaulted on its foreign debt in 2020 and continues to face fiscal challenges, despite reaching an agreement in principle to restructure its debt in 2023.

Labor issues in the DRC are another factor.

“DRC is a difficult place for Japanese companies compliance-wise,” said a source at a Japanese trading house considering mining projects in the area.

“Zambia will also need to resolve its default before we can invest there,” the source said.