At a Glance
- Cobalt in the DRC fuels the EV industry, but concerns over child labor and unsafe mining practices require urgent reforms for sustainable and ethical production.
- Zimbabwe leads Africa’s lithium market, attracting foreign investment for EV battery production, but infrastructure deficits and artisanal mining remain key challenges.
- Africa’s mineral wealth drives global clean energy, with surging demand for cobalt, lithium, and rare earth elements, but sustainable mining practices are crucial for long-term growth.
Africa is home to some of the world’s richest deposits of critical minerals essential for powering the global technological revolution.
As demand for renewable energy solutions and electric vehicles (EVs) surges, the continent’s reserves of cobalt, lithium, tantalum, rare earth elements (REEs), and platinum group metals (PGMs) position it as a key player in the global supply chain.
The global critical minerals market was valued at $320 billion in 2022 and is projected to reach $494.23 billion by 2030, growing at a 5.69 percent CAGR. South Africa’s platinum group metals market alone is forecasted to reach $69.72 million by 2032, reflecting growing industrial demand.
However, despite these opportunities, governance issues, environmental risks, and infrastructure challenges must be addressed for Africa to maximize its potential.
Cobalt: The DRC’s dominance
The Democratic Republic of Congo (DRC) accounts for over 70 percent of the world’s cobalt supply, making it a linchpin in the global EV battery market.
However, the sector is marred by concerns over child labor and unsafe artisanal mining practices. While foreign investments—particularly from China—are accelerating production, sustainable mining reforms are critical to ensuring long-term economic benefits.
Lithium: Zimbabwe’s rising role
Zimbabwe ranks 5th globally in lithium reserves and leads Africa’s lithium market. In 2021, the country produced 1,200 tonnes of lithium, with major deposits in Bikita (home to an estimated 11 million tonnes) and Arcadia.
The influx of foreign investment aims to boost production for EV battery manufacturing, yet challenges such as infrastructure deficits and artisanal mining persist.
Rare Earth Elements: East Africa’s untapped potential
Kenya, Tanzania, and Madagascar possess significant REE deposits vital for wind turbines, solar panels, and military applications.
The demand for these elements is expected to quadruple by 2040. However, extraction is environmentally intensive, requiring strict regulatory oversight.
Platinum Group Metals: South Africa’s industry leadership
South Africa is the world’s leading producer of PGMs, essential for catalytic converters and industrial applications.
The country’s PGM sector, valued at $41.98 million in 2023, is expected to grow at a 5.8 percent CAGR, reaching $69.72 million by 2032. Labor disputes, outdated infrastructure, and fluctuating commodity prices remain key risks.
Graphite: Mozambique’s emerging market
Mozambique is gaining attention for its graphite reserves, crucial for EV battery anodes and energy storage.
The Balama mine is among the world’s largest graphite projects, positioning Mozambique as a major supplier. However, logistical bottlenecks and regulatory uncertainties could limit its growth.
The Green energy transition & mineral demand
With nations accelerating clean energy transitions, the demand for Africa’s minerals is soaring. The International Energy Agency (IEA) forecasts a fourfold increase in demand for minerals crucial to clean energy technologies by 2040. As a result, Africa’s strategic mineral reserves are pivotal for meeting this demand while fostering economic growth.
Tech industry investments in African mining
Leading companies such as Tesla, Apple, and Samsung are investing in ethical mineral sourcing. Tesla, for instance, has explored direct partnerships with DRC cobalt miners to ensure responsible supply chains. These investments highlight Africa’s growing role in securing the raw materials needed for next-generation technology.
Strategic trade agreements & regional alliances
Africa’s mineral wealth has led to the expansion of trade agreements, including the African Continental Free Trade Area (AfCFTA), which aims to harmonize mining policies and boost intra-African trade. These initiatives provide an opportunity for African nations to negotiate better deals and retain more value from their natural resources.
The road ahead: A sustainable mining future
For Africa to maximize its mineral wealth, it must prioritize transparency, environmental sustainability, and ethical labor practices. Countries must strengthen regulations, invest in value-added industries, and leverage trade alliances to gain a stronger foothold in the global economy.
By embracing innovation, responsible governance, and strategic partnerships, Africa can fuel the global tech revolution while ensuring long-term prosperity for its people.
