US Firms Ink Africa Deal to Break China's Grip on Critical Minerals

ST. LOUIS, MO – April 15, 2026 – In a significant move to secure American supply chains, US Strategic Metals (USSM) announced today it has signed a Memorandum of Understanding with Virtus Minerals to create a direct channel for cobalt and copper from the Democratic Republic of Congo (DRC) to a processing facility in Missouri. The agreement, signed in the DRC's capital of Kinshasa, marks a major step in the United States' strategy to reduce its reliance on geopolitical rivals for materials essential to national defense and the green energy transition.

The partnership aims to route cobalt products from the Virtus-owned Chemaf mining asset in the DRC directly to USSM's hydrometallurgical plant in Fredericktown, Missouri. This vertical integration of African resources with American processing power represents a deliberate effort to build a resilient, non-adversarial supply chain, directly challenging China's long-standing dominance over the global critical minerals market.

A New Front in the Global Minerals Race

The deal lands squarely in the middle of a global geopolitical contest for the resources that power the 21st-century economy. Cobalt and copper are indispensable components in everything from electric vehicle batteries and wind turbines to advanced aerospace and defense systems. For years, the United States and its allies have watched with growing concern as China methodically secured its control over these vital inputs.

The DRC is the world's undisputed king of cobalt, producing over 70% of the global supply. Chinese firms currently control approximately 70% of the country's copper-cobalt mines and an estimated 85% of the world's capacity for processing these minerals into usable form. This chokehold gives Beijing immense leverage over global supply and prices, a strategic vulnerability that U.S. policymakers are now urgently trying to address.

This USSM-Virtus partnership is a direct manifestation of a broader U.S. government strategy to counter that influence. It aligns with recent initiatives like the U.S.-DRC Strategic Partnership Agreement, signed in late 2025 to grant American companies preferential access to mineral assets. It also complements massive infrastructure investments, such as the U.S.-backed Lobito Corridor railway, designed to create a reliable and efficient export route for minerals from the African copper belt to Atlantic ports, bypassing routes traditionally dominated by Chinese interests.

From Congo to Missouri: The High-Stakes Path for Ethical Cobalt

At the heart of the agreement are two American companies positioning themselves as architects of a new, more transparent mineral trade. Virtus Minerals is the first major American-owned mining operation to establish a significant presence in the DRC in over a decade. The company recently acquired the Chemaf assets, which include the highly strategic Mutoshi and Etoile mines. Once fully operational, these sites are projected to produce up to 25,000 tonnes of cobalt hydroxide and 75,000 tonnes of copper cathodes annually—a substantial volume that can be directed toward a U.S.-allied supply chain.

Critically, Virtus and USSM are framing their collaboration around the principles of ethical and sustainable sourcing. The DRC's mining sector has long been plagued by reports of human rights abuses, dangerous working conditions, and environmental degradation, particularly in artisanal and poorly regulated mines. By emphasizing a documented chain of custody and adherence to high environmental and labor standards, the companies aim to offer a stark contrast to the often-opaque operations of their rivals.

"This MOU marks an important step in our efforts to connect high-quality African resources with American processing expertise," said Stacy W. Hastie, CEO of USSM. "By directing production through our Missouri facility, we intend to help deliver ethically sourced, traceable cobalt and other strategic materials to the U.S. defense and commercial industries."

However, the path from the mines in Kolwezi and Lubumbashi to the processing plant in Missouri is fraught with logistical challenges. The DRC's underdeveloped infrastructure, including unreliable power grids and transport links, significantly increases the cost and complexity of operations. The success of this venture will depend heavily on the ongoing build-out of supporting infrastructure like the Lobito Corridor and the ability of the partners to navigate the complex local operating environment.

Revitalizing America's Industrial Heartland

The second, equally crucial, pillar of this strategy is located not in Africa, but in the American Midwest. USSM's Fredericktown facility represents the domestic anchor of this new trans-Atlantic supply chain. For the U.S. to truly achieve mineral independence, it must not only secure access to raw materials but also rebuild its atrophied domestic capacity to refine them.

USSM's plant, a former Superfund site transformed into a state-of-the-art multi-metallic processing hub, is designed to do just that. The facility uses innovative hydrometallurgical technology to process a wide range of feedstocks, including primary ores from mining partners like Virtus and secondary materials from recycled batteries. This capability is vital for creating a circular economy and maximizing the value of every mineral unit.

Bolstered by nearly $500 million in recent funding, USSM is scaling its Fredericktown operations to become a commercial-scale producer of a suite of strategic metals. The partnership with Virtus provides a foundational source of feedstock that will enable the facility to ramp up production, creating high-skilled jobs in Missouri and demonstrating a viable model for reshoring critical industrial processes.

"Virtus is excited to partner with USSM to advance our anchor investment in the Chemaf mining asset, strengthening the critical link between the United States and the Democratic Republic of the Congo," said Phil Braun, CEO of Virtus. "Together, we will create hundreds if not thousands of high-quality jobs and drive lasting economic prosperity."

The MOU is the first step in what promises to be a long and complex endeavor. The companies will now enter further discussions to iron out the intricate details of logistics, supply chain optimization, and technical collaboration. Yet, this agreement represents one of the most tangible efforts to date to turn U.S. strategic policy into commercial reality, forging a new path for the essential materials that will define the coming decades.