DRC and Zambia sign $2bn China-backed EV battery corridor deal for copper and cobalt processing

The Democratic Republic of Congo and Zambia signed a $2 billion deal this week to create a joint electric vehicle battery corridor focused on copper and cobalt processing, officials said. Backed by Chinese state-linked investors, the project aims to develop special economic zones for battery precursor production and reduce reliance on raw mineral exports by fostering local value addition in the Central African Copperbelt.

The joint electric vehicle battery corridor will be built around special economic zones (SEZs) in both the Democratic Republic of Congo and Zambia, dedicated to battery precursor production and related industrial activities, officials said. The initiative aims to shift the region’s economy from exporting raw copper and cobalt minerals toward processing and manufacturing higher-value battery components. According to policy documents and experts, the corridor will initially focus on refining battery precursor materials from copper and cobalt, with plans to eventually expand into cathode material production and possibly battery cell or pack assembly.

China currently controls an estimated 70% or more of global cobalt refining capacity and a significant share of copper smelting, positioning Chinese firms as key providers of capital, technology, and offtake agreements for the new processing facilities.

Chinese state-linked investors are expected to play a central role in financing and technical partnerships for the corridor, sources confirmed. Analysts have identified the $2 billion project as part of a broader strategic competition between Chinese and Western actors, particularly the United States, to secure critical minerals supply chains. However, resource governance groups have emphasized the need for robust transparency and governance safeguards to prevent opaque mineral-for-infrastructure deals, which have historically raised concerns in the region.

The DRC and Zambia’s agreement builds on a bilateral framework established between 2021 and 2022 to develop a regional battery industry centered on the Central African Copperbelt, a mineral-rich area spanning both countries. The corridor is designed as a cross-border industrial ecosystem linking mining regions in the DRC to processing and manufacturing sites in both countries, integrated with transport corridors for export. The SEZs are planned to host mineral refineries, battery precursor plants, ancillary chemical industries, and potentially battery component manufacturing. Pre-feasibility studies are underway, supported by the United Nations Economic Commission for Africa (UNECA), which organized a workshop in Lusaka in early September 2025 to build capacity among micro, small, and medium enterprises (MSMEs) and financial institutions to engage with the battery value chain.

The project is expected to leverage the DRC and Zambia’s substantial cobalt and copper reserves. The DRC supplies about 70% of the world’s mined cobalt, while both countries are significant copper producers. According to resource governance analyses, developing local refining and precursor production capacity could capture a much larger share of the electric vehicle battery value chain, potentially generating billions of dollars in investment, creating tens of thousands of jobs, and increasing fiscal revenues compared to exporting raw ore. The corridor’s mineral inputs will include cobalt, copper, and associated battery minerals such as lithium and manganese where available.

The United States has also engaged with the DRC and Zambia on the battery value chain. On December 13, 2022, the three parties signed a non-binding Memorandum of Understanding (MOU) focused on technical assistance, feasibility studies, and investment promotion to support an integrated EV battery value chain. U.S. agencies pledged to provide technical support and help identify opportunities for American companies in mining and midstream processing. However, the MOU does not constitute a legal funding commitment and is contingent on future appropriations. Experts have interpreted the U.S. involvement as an effort to counterbalance China’s dominant role in the region’s cobalt and copper supply chains.

Governance and regulatory challenges remain a critical focus for both governments and partner organizations. Analysts have highlighted risks including policy instability, regulatory uncertainty, power supply constraints, infrastructure bottlenecks, and corruption, all of which have historically affected large-scale mining and industrial projects in the region. Recommendations include adopting clear local-content rules, environmental and social safeguards, and transparent tendering processes for major projects. Coordinated cross-border regulation and planning are also seen as essential to avoid duplication, harmful tax competition, and inconsistent standards within the shared battery corridor.

The DRC–Zambia battery corridor initiative is ongoing but still in the implementation and negotiation phases. Large-scale financing packages, including anticipated Chinese-backed investments, have yet to be fully finalized and disbursed, according to officials and policy analysts. The United Nations Economic Commission for Africa’s representative Jean Luc Mastaki has described a phased approach involving a signed agreement followed by pre-feasibility studies and the gradual development of the SEZs. Regional forums and business meetings, including those held in Kinshasa in late 2022, have promoted the corridor and advanced feasibility work. The project remains a focal point for multilateral efforts to foster industrialization and economic diversification in the Central African Copperbelt.