China to invest in Afghanistan’s Lithium sector
Beijing/Kabul: China-based company Gochin recently offered to invest USD 10 billion in Afghanistan’s lithium mining industry, which is valued at more than USD 1 trillion.
This appears to be part of a larger strategy of Beijing to control the country’s mineral resources, especially its lithium deposits, which are crucial to global mineral supply chains, reports Khaama Press.
If Gochin is awarded the lithium mining contract, the Chinese company has also promised to engage in a number of other Afghan infrastructure projects, including tunnels, hydroelectric dams, and highways, according to the Afghanistan Ministry of Mines and Petroleum, according to reports.
China has sought to expand its economic presence in Afghanistan and gain control of its natural resources since the Taliban overtook Afghanistan in August, 2021.
To renegotiate and restart prior mining and oil contracts, Chinese authorities and businesses have been in contact with Taliban leaders, Khaama Press reported.
French-based international affairs analyst and former Afghan diplomat stationed in Beijing, Sayed Mehdi Munadi, claim that China also illegally exploits Afghanistan’s natural riches through bribery, smuggling, and other means.
Beijing is rapidly increasing its demand for lithium and cobalt due to its sale of more than half of the world’s electric automobiles, and nearly two-thirds of the world’s lithium is processed and refined by Chinese enterprises, which could pose a supply chain danger for other nations, according to reports.
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