US Invests Heavily in Lobito Rail Corridor to Secure Critical Minerals

The United States is making significant investments in the Lobito rail corridor, which links Angola's Atlantic coast to the Democratic Republic of Congo (DRC) and Zambia. The aim is to secure access to critical minerals like copper and cobalt, which are essential for electric vehicles and the broader energy transition away from fossil fuels.

Revitalized by a Trafigura-led consortium with US backing, the 1,100-mile railway now significantly shortens the delivery time of minerals, reducing it from over a month to less than a week. The Biden administration has committed $553 million to the project, alongside an additional $1.6 billion for a new 500-mile railway line connecting Zambia's copper belt to Lobito, bypassing the DRC. These efforts are seen as a strategic move to counter China, which has invested heavily in alternate routes and dominates mineral production in the region.

In total, the US has committed nearly $5 billion to various projects along the corridor, including initiatives in agriculture and energy. Western companies like KoBold Metals and Barrick Gold are also expanding their operations in Zambia, underscoring the West's efforts to strengthen supply chains for critical minerals.

The DRC and Zambia collectively hold around 10% of global copper reserves and a significant portion of the world's cobalt. While Chinese firms dominate production, the US aims to reduce dependence on China for key minerals. Investments in the rail corridor represent a strategic push to secure mineral supply chains and counter Beijing's influence, with bipartisan support ensuring continuity despite changes in leadership in Washington.