A fight between the United States and China is brewing over 5G and the question of who can be trusted to control the world’s wireless infrastructure. But scant attention is being paid to an issue of arguably greater importance to the future of the world’s economy and security: China’s control of the raw materials necessary to the digital economy. No new phone, tablet, car, or satellite transferring your data at lightning speed can be made without certain minerals and metals that are buried in a surprisingly small number of countries, and for which few commonly found substitutes are available. Operating in niche markets with limited transparency and often in politically unstable countries, Chinese firms have locked up supplies of these minerals and metals with a combination of state-directed investment and state-backed capital, making long-term strategic plays, sometimes at a loss. Through in-depth analysis of company reports and disclosures, mapping of deal flows, quantification of direct and indirect equity stakes, and other primary research, FP Analytics has produced the first consolidated review of this unprecedented concentration of market power. Without rhetoric or hyperbole, this fact-based analysis reveals how rapidly and effectively China has executed its national ambitions, with far-reaching implications for the rest of the world.

A Vast Sum of Parts China’s control or influence over critical minerals and metals that power modern technology is unrivaled.

Chinese Resource Strategy China is securing minerals and metals for which it is net import reliant.

Cobalt Lithium Niobium Platinum Group Metals (PGMs)

Cobalt Lithium Niobium Platinum Group

Metals (PGMs) Argentina Production: 10% Reserves: 14% China’s Influence: Stakes in 41% of major planned projects accounting for 37% of reserves Australia Production: 58% Reserves: 19% China’s Influence: Stakes in 61% of production Bolivia Production: None Reserves: Believed to be among the world’s largest China’s Influence: Stakes in 100% of development via an equity agreement Brazil Production: 88% Reserves: 80% China’s Influence: Stakes in 100% of production Chile Production: 21% Reserves: 57% China’s Influence: Stakes in 67% of Chile’s output Democratic Republic of the Congo Production: 61% Reserves: 49% China’s Influence: Influence over 52% of cobalt production with equity stakes and supply agreements South Africa Production: 54% Reserves: 91% China’s Influence: Stakes in two-thirds of all major PGM sites

Building on Domestic Resource Dominance Graphite 70% production 24% reserves

Rare Earth Elements 80% production 37% reserves

Vanadium 56% production 48% reserves

Building on Domestic Resource Dominance Graphite 70% production | 24% reserves

Rare Earth Elements 80% production | 37% reserves

Vanadium 56% production | 48% reserves

United States China’s Influence: Acquisition of the only U.S. REE mine conferring control over strategic resource. South Africa China’s Influence: Stakes in primary vanadium developer and “strategic framework” to develop vanadium redox-flow batteries. Mozambique China’s Influence: The three major developers of new projects all signed off-take contracts with Chinese firms. Australia China’s Influence: Stakes in largest REE oxide producer and 100% offtake from the second-largest REE deposit.