Critical mineral demand drives shifts in resource sovereignty

The global energy and digital transitions are driving an intense search for critical minerals such as cobalt, nickel, lithium, copper, and gold. While the demand is concentrated in China, Europe, and the United States, the majority of these essential resources are located in developing nations.

Currently, the Democratic Republic of the Congo produces 73% of the world's cobalt, and Indonesia produces nearly 60% of its nickel. Historically, multinational corporations from Western and Chinese entities have exploited these deposits through low taxes, minimal royalties, and cheap labor, yielding significant profits for shareholders.

However, resource-rich nations are increasingly implementing measures to assert sovereignty. Indonesia banned nickel oxide exports in 2020 to force domestic processing, and the Democratic Republic of the Congo is expected to impose new moratoria starting in 2025. This shift highlights the tension between global resource security and the human rights and economic development of the producing nations.