• Tanzania is a new hub for US-China rivalry over critical minerals like nickel and rare earths.
• US firm Lifezone Metals and China's Zhongzhou Mining are advancing major nickel processing projects.
• China's Shenghe Resources is also moving to control the significant Ngualla rare earths project.

Tanzania is rapidly becoming a key arena in the global competition between the United States and China for access to critical minerals, with both superpowers backing significant projects to secure supplies of nickel, copper, and rare earths vital for the green energy transition.

Recent developments highlight the escalating contest. On September 2, U.S.-based Lifezone Metals announced it had secured a $60 million financing deal for its Kabanga Nickel project, which aims to produce battery-grade nickel, copper, and cobalt. This followed closely on the heels of Chinese firm Zhongzhou Mining breaking ground on what is poised to be the nation's first nickel and copper refining plant, a $15 million investment.

These moves underscore the strategic importance of Tanzania, a nation with largely untapped reserves of critical minerals. Washington and Beijing are increasingly looking beyond traditional sources like the Democratic Republic of Congo and Zambia, turning their focus to this East African country.

American interest in Tanzania's mineral wealth has been growing. During a 2023 visit, Vice President Kamala Harris highlighted plans for a battery-grade nickel facility at the Kabanga site, intended to supply the U.S. market. By September 2024, the U.S. International Development Finance Corporation (DFC) had issued a letter of interest to provide loans for the project, signaling firm U.S. government support. The DFC has been actively backing mineral projects across Africa to diversify supply chains away from China.

Meanwhile, China is making parallel strides. The Zhongzhou Mining refinery is expected to create 300 direct jobs and process over 280,000 tonnes of raw materials annually, aligning with Tanzania's policy of local value addition. In the rare earths sector, Chinese firm Shenghe Resources finalized a deal this year to acquire Australian-owned Peak Rare Earths, giving it control of the Ngualla project. Ngualla is one of Africa's most advanced rare earth projects, with a projected annual output of 37,200 tonnes of concentrate, and is seen as a strategic asset for Beijing.

Tanzania's government has actively encouraged this investment, participating in a February 2023 meeting of the U.S.-led Mineral Security Partnership, a coalition of Western nations aiming to secure their mineral supply chains. With its untapped potential in minerals ranging from graphite to copper, Tanzania is set to remain a focal point for both U.S. and Chinese strategic interests in the coming years.

This article was initially published in French by Emiliano Tossou 

Adapted in English by Ange Jason Quenum