How China Wins the Resource War

Critical minerals are essential for the green transition, military technology, and the AI boom. In barely a year, lithium and rare earths have become some of the most contested objects on Earth. However, this scarcity is manufactured by refineries, choke points, and the states that control them. Richard talks to Thea Riofrancos, author of Extraction: The Frontiers of Green Capitalism, about what these minerals really are, the gutted landscapes the green transition runs on, and the new geopolitics of extraction, from Trumpian state capitalism to Latin America to China.

Critical minerals are the building blocks of modern technology. Lithium is used in batteries, while rare earth elements are found in everything from wind turbines to smartphones. The extraction and processing of these minerals come with significant environmental and social costs. Mining sites are often located in impoverished regions, causing devastating impacts on local communities. Water pollution, soil erosion, and biodiversity loss are common consequences of these activities.

The green transition aims to shift from fossil fuels to renewable energy, but this transition itself triggers a new wave of mining. Demand for lithium for electric vehicle batteries is skyrocketing. However, meeting this demand means that current mining practices are unsustainable. Thea Riofrancos addresses this paradox of green capitalism: while trying to save the environment, we are also destroying it.

Geopolitically, control over critical minerals is reshaping global power dynamics. China holds a near-monopoly on the processing of rare earth elements. This creates strategic vulnerabilities for Western countries. The US and Europe are trying to build their own supply chains, while China's investments in Africa and Latin America are increasing. This new resource war brings a competition reminiscent of the Cold War era.

In conclusion, the geopolitics of critical minerals must be addressed not only economically but also environmentally and socially. For the green transition to succeed, these minerals must be extracted and distributed fairly and sustainably. Otherwise, we may face a new form of colonialism. Richard and Thea's discussion provides an important starting point for understanding this complex issue.