Developing Countries in the Global Critical Minerals Race: Opportunities and Challenges

The global demand for critical minerals presents both opportunities and challenges for developing nations. While building smelters can capture more value and stimulate economic growth, there are significant barriers, such as technical, logistical, and economic factors, that need careful navigation. Countries like Angola and Indonesia showcase varying strategies in this evolving landscape.

The global rush for critical minerals has created opportunities for developing countries blessed with essential deposits. However, harnessing these resources efficiently requires capturing maximum value from the metals extracted.

Processing raw materials through smelting not only increases value but also advances broader industrial growth. It offers Western policymakers a means to lessen China's control over critical metals processing capabilities.

Nonetheless, establishing a successful processing industry involves numerous challenges, as highlighted by a study from CRU and the World Bank. Power supply, infrastructure, and policy alignment are crucial for making this low-margin business viable, especially during low-price cycles.