Africa’s Critical Minerals: A Crucial Player in the Global Energy Transition

International players have their sights set on Africa, home to around 30% of the world’s critical minerals. Credit: corlaffra/Shutterstock.

Sub-Saharan Africa contains approximately 30% of the world’s proven critical mineral reserves, according to the International Monetary Fund. Leading the charge, the Democratic Republic of Congo (DRC) accounts for around 70% of global cobalt production. Just a stone’s throw away, South Africa, Gabon, and Ghana together produce about 60% of the world’s manganese. Moreover, untouched lithium deposits lie in wait in Zimbabwe, the DRC, and Mali.

This vast treasure trove of critical minerals positions Africa to play a significant role in the ongoing energy transition. As the world pivots towards sustainable energy solutions, lithium-ion batteries crucial for electric vehicles and energy storage predominantly rely on key minerals such as lithium, graphite, nickel, cobalt, and manganese—assets in which Africa is richly endowed.

The Competitive Landscape

With growing demand for these resources, international players are keen on capitalizing on Africa’s mineral wealth. Historically, China has held a strong grip on the continent’s mineral markets. However, as the energy transition accelerates, the United States is stepping up its game, seeking to secure vital supplies through a variety of avenues, including partnerships and investments. Additionally, several European nations, including the EU, the UK, and Norway, are eyeing Africa’s resources, particularly Tanzania’s nickel, through initiatives like the Minerals Security Partnership established in 2024.

As the race for these vital commodities heats up, Africa stands at a crossroads. As TS Lombard macro-economist Stephen Blitz aptly puts it: “Africa is having its moment of leverage.”

China’s Strategy: The Belt and Road Initiative

China’s approach to global trade has been largely shaped by the Belt and Road Initiative (BRI), initiated by President Xi Jinping in 2013. This ambitious plan aims to enhance infrastructure development and multiply China’s trade influence across continents, with Africa being a pivotal focus. For many African nations, the BRI has led to minerals-for-infrastructure deals like the Sicomines project in the DRC, established in 2008. This partnership allowed Chinese investors a 68% stake in a copper-cobalt joint venture in exchange for funding essential infrastructure projects such as roads and hospitals.

Cheryl Buss, CEO of Absa International, explains, “China saw Africa as a key resource provider in terms of critical minerals. Its strategy has been to secure sites and develop mining there.” Currently, 77% of Africa’s resources are exported in a raw state, offering significant revenue opportunities for China, which dominates the global refining landscape.

The United States’ Approach: National Security and Collaborations

For the U.S., the stakes are high, as critical minerals are increasingly viewed through a national security lens. In fact, by 2024, the U.S. relied entirely on imports for 15 mineral commodities, including essential ones like graphite and manganese. Despite policy efforts to lessen reliance on Chinese imports, the U.S. still imported 43% of its graphite from China alone.

Under both the Trump and Biden administrations, a transactional approach has been evident in U.S.-Africa relations. The U.S. has entered into several agreements with African nations, aiming to diversify its sources for critical minerals. President Trump brokered a truce between the DRC and Rwanda to stabilize cobalt and lithium corridors, emphasizing the importance of mineral security.

Moreover, the introduction of the Minerals Security Partnership under Biden shows a commitment to fostering resilient supply chains while promoting environmentally sustainable practices.

Positioning Africa for Success

Geopolitical rivalries and rising global mineral demand create a pivotal moment for Africa. International players are eager to capitalize on Africa’s mineral wealth, and the continent has options beyond China. However, there’s a pressing need for African governments to capitalize on this opportunity effectively.

Africa must enhance its attractiveness as an investment destination while ensuring it can meet the demands of global markets. This means balancing infrastructure needs and developing trade frameworks that yield equitable benefits for local communities. As Buss asserts, “We need to improve beneficiation and manufacturing onshore,” to stimulate economic growth while creating jobs.

Additionally, the African Continental Free Trade Area (AfCFTA), launched in 2021, establishes a framework for intra-African trade, promising to connect 1.3 billion people across 55 countries. If successfully implemented, AfCFTA could significantly boost mineral exports among member states, thereby enhancing Africa’s global trading position.

Challenges Ahead

Although the potential for growth is enormous, Africa faces challenges that must be navigated carefully. Fragmented markets, a history of reliance on external trade, and the slow implementation of AfCFTA continue to inhibit intra-Africa trading. The continent’s ability to produce processed minerals remains limited, with the current strategic focus primarily on raw material exports.

To truly benefit from international partnerships, African nations must prioritize local value addition in the mineral processing and refining sectors. Strengthening domestic capabilities not only enhances local economies but also ensures that African communities benefit from their own resources.

By leveraging its rich mineral resources effectively, Africa can emerge as a key player in the global energy transition landscape. The stakes are high, and while external players are eager to engage, the ultimate outcome rests in the hands of African governments and their capacity to secure a prosperous future for their nations.