Crypto News: Supply Lines: Rail through Africa

The US is racing to help develop a new rail line linking a key source of critical minerals in central Africa with a port on the continent's Atlantic coast, aiming to establish a trade route for materials used to produce electric vehicles.

The so-called Lobito Corridor project — which involves laying hundreds of miles of track from Zambia's Copperbelt province to an existing line in neighboring Angola — also serves as a flagship of the Biden administration's efforts to take on China.

Metals including copper and cobalt that are crucial to EVs and the batteries that power them will be among the main cargo. And as this Big Take story explained, the journey for African minerals to global markets is fraught with delays.

Photographer: Murray, Brendan

Beijing has dominated infrastructure investment in Africa for the past two decades, and now the US is trying to catch up. That competition is playing out as concerns grow about access to raw materials that will power the energy transition.

A feasibility study for the new line will start by year-end and take six months, according to Helaina Matza, Biden's acting special coordinator for the administration's Partnership on Global Infrastructure Investment. The project should be complete within five years, she said in a virtual briefing Tuesday.

"The goal is really to stay as close to that timeline as possible, not only for our partners but for us also," she said. "It's quite important for us to move as fast as we can."

Last week, the US signed a memorandum of understanding with Angola, the Democratic Republic of Congo, Zambia and the European Commission to kickstart the Lobito project. The African Development Bank signed on, and said it would help raise $1.6 billion in financing, while contributing about $500 million itself.

The Africa Finance Corp. also joined the effort and will be the overall project developer for what Matza said "represents the most significant transport infrastructure that the US has helped develop on the African continent in a generation."

Click here to subscribe to Next Africa, Bloomberg's twice-weekly newsletter on where the continent stands now — and where it's headed.

Related Reading on Bloomberg.com:

—Matthew Hill in Mbombela, South Africa

Pay gains | Workers in the US are getting record-breaking wage hikes this year thanks to strategic strikes and stunning contract wins. The result is a boost in middle-income wages and a shift in the balance of power between companies and their employees. Even before the UAW reached historic contract deals with carmakers, unions across the country had already won their members 6.6% raises on average in 2023 — the biggest bump in more than three decades, according to an analysis by Bloomberg Law. Meantime, more than 2,000 US pharmacists plan to walk off the job this week.

The European Union is weighing a new round of restrictions that would hit some €5 billion in trade with Russia as part of a sanctions package targeting Moscow for its war against Ukraine.
South Korea's exports rose for the first time since late last year in a positive sign for the nation's growth outlook and an indication that global demand is showing resilience.
The UK government is being urged to scrap intellectual property demands in trade negotiations with India, which critics say could threaten imports of cheap life-saving drugs.
Aston Martin lowered its annual delivery outlook after supply-chain issues hampered output of its new DB12 sports car. Separately, Toyota posted record quarterly earnings, thanks to a weaker yen that's boosting income brought back home on robust global vehicle demand and improving supply chains.
Mexico's economy accelerated more than forecast in the third quarter, buoyed by flourishing trade with the US and solid spending by Mexican consumers.
This video looks at the long-term impact Nvidia will see from potentially having to cancel $5 billion worth of sales to China.
Thousands of Bangladeshi garment workers battled police and blocked roads leading to manufacturing hubs outside the capital Dhaka on Tuesday, demanding employers almost triple their pay.
Russian oil product exports have dropped to a 17-month low after a temporary ban on diesel shipments and as seasonal maintenance crimped refining activity. Separately, President Vladimir Putin's war in Ukraine is leaving billionaires who sought to integrate with the West to face the reality of international isolation.

The sixth annual Bloomberg New Economy Forum returns to Singapore Nov. 8-10 as the world's most influential leaders gather to address the critical issues facing the global economy. This year's theme is "Embracing Instability." Request an invitation here.

Join Bloomberg's "Supply Chain Resiliency: Risk & Mitigation" event in Detroit on Nov. 16 for an afternoon with our research analysts & subject experts to discuss trends, risks, and innovative ways to monitor and manage critical supply-chain elements — especially their impact on the auto industry. To register for the free, in-person-only event, click here.

The Panama drought is snarling canal shipping, forcing authorities to constrain traffic and boosting some tanker rates to an all-time high.
China's plan to "optimize and adjust" its export controls on graphite — a key material used in electric vehicle batteries – starts in December. But the short-term impact of this latest volley in the battle to secure critical minerals could actually be minimal, according to BloombergNEF analysis.
Run SPLC after an equity ticker on Bloomberg to show critical data about a company's suppliers, customers and peers.
Use the AHOY function to track global commodities trade flows.
For freight dashboards, see {BI RAIL}, {BI TRCK} and {BI SHIP} and {BI 3PLS}
Click HERE for automated stories about supply chains.
On the Bloomberg Terminal, type NH FWV for FreightWaves content.
See BNEF for BloombergNEF's analysis of clean energy, advanced transport, digital industry, innovative materials, and commodities.

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