By Uche J. Udenka
The geopolitical imperatives of Africa’s Rare Earth Elements (REEs) center on the continent’s strategic role in the global supply chain for critical minerals. REEs, which include elements like lithium, cobalt, and rare earth metals, are essential for a wide range of advanced technologies, including electric vehicles, renewable energy systems, defense technologies, and high-tech electronics. Africa’s abundant reserves of these minerals have important implications for global trade, international relations, and security.
Africa possesses significant reserves of REEs, with countries like the Democratic Republic of the Congo (DRC), South Africa, Zambia, and Namibia emerging as key players in the mining and extraction of these resources. The DRC, for example, is a major supplier of cobalt, a crucial component in lithium-ion batteries used in electric vehicles (EVs), while countries like Zimbabwe and Mozambique have deposits of lithium, essential for battery production.
Africa holds substantial rare earth deposits. Countries such as Namibia (Lofdal Heavy Rare Earth Project), Malawi (Kangankunde), Angola (Longonjo Project), Tanzania (Ngualla Rare Earth Project), Madagascar (Tantalus), and Uganda (Makuutu Project) are at various stages of developing their REE resources. Notably, South Africa’s Steenkampskraal mine boasts some of the highest-grade REEs globally, including neodymium and praseodymium, which are critical for electric vehicle motors and wind turbines.
The key REEs found in Nigeria include: Neodymium (Nd) used in high – strength magnetics and various electronic applications. Cerium (Ce) used in catalyst and glass manufacturing. Lanthanum (La) used in applications Praseodymium (Pr) utilized in magnet and glass application. Yttrium (Y) for production of phosphorus, LED’s and display technologies. These REEs are often associated with mineral deposits such as bastnasite, monazite, and xenotime, which can be found in various geological formations across the country.
Rising Demand and Global Competition: The demand for REEs surged around 2010 as nations like China, Japan, and South Korea recognized vulnerabilities in the supply chain. China capitalized on this by forging strong ties with resource-rich nations, notably in Africa. Through infrastructure-for-minerals deals, China gained access to Africa’s vast mineral wealth. For example, the Democratic Republic of Congo (DRC) controls over 70% of the world’s cobalt supply, with much of it exported to China for more than a decade. This arrangement has allowed Chinese firms to dominate the global REE supply chain, securing their role as essential players in the world’s green energy future.
The “New Scramble for Africa”
As demand for REEs increases, there is a growing international interest in Africa’s mineral resources, reminiscent of the “scramble for Africa” during the colonial era. External powers, including the U.S., EU, China, and India, are increasingly vying for access to African mineral resources. This competition may lead to both opportunities and risks for African countries, including the potential for more foreign exploitation, as well as opportunities for economic development, infrastructure projects, and job creation.
China’s Dominance and Its Implications: China remains the dominant force in the global REE market, producing 60% of the world’s REEs and refining 80%. This gives China significant leverage over major economies, which rely heavily on its exports—80% of U.S. REE imports and 98% of the EU’s come from China.The U.S., in particular, is keen to reduce its dependence on Chinese REEs, recognizing the strategic vulnerabilities this creates. However, China’s early investments and its economic influence in Africa give it a substantial head start. African markets often rely on Chinese financing, making them susceptible to China’s long-term geopolitical goals. Through its Belt and Road Initiative, China has entrenched its influence, combining infrastructure development with resource acquisition.China’s dominance in REE processing has heightened the geopolitical competition for these resources. As the world’s largest producer of rare earth materials, China has been involved in strategic investments in African mining projects, securing access to valuable minerals while also exerting political and economic influence over African nations. This creates a dynamic where African countries, in their efforts to attract foreign investment, may face pressure to align with China’s political and economic goals, especially in terms of trade relations and global policy.
Strategic Importance in the Global Supply Chain:The geopolitical significance of Africa’s REEs is tied to their importance in global supply chains for critical industries. As the world moves toward green energy technologies, the demand for REEs is skyrocketing. Africa’s mineral wealth places it at the center of the global race for energy transition materials. Countries outside Africa, particularly China, the U.S., and European Union (EU) member states, are looking to secure stable and reliable sources of REEs from the continent to reduce dependence on supply chains dominated by countries like China, which controls a substantial portion of global production.
Geopolitical Risks and Challenges: Africa’s geopolitical imperatives concerning REEs also involve significant risks. Political instability in key resource-rich regions, such as the DRC, can disrupt mining operations and impact global supply chains. Additionally, issues like environmental degradation, human rights concerns, and the influence of multinational corporations on African governments pose challenges in managing the sustainable development of these resources. Moreover, the control over REEs could lead to resource conflicts, as various African countries struggle for control over lucrative mineral reserves.
Opportunities for Regional Integration:Africa’s vast mineral wealth, including REEs, offers opportunities for regional cooperation and integration. Initiatives like the African Continental Free Trade Area (AfCFTA) could help foster greater intra-African trade in these critical materials, ensuring that the benefits of REE extraction are more evenly distributed across the continent. This could also enhance Africa’s bargaining power in negotiations with foreign powers seeking access to its mineral resources.
Developing Local Value Chains: One of the key geopolitical imperatives for Africa is to move beyond simply exporting raw materials. The continent has the potential to develop its own value-added industries, such as refining and processing, which would allow it to capture more of the economic value from its mineral resources. Developing local value chains also provides a strategic advantage, as it reduces dependence on external powers for the processing of rare earth materials and helps build stronger
Unlocking Africa’s Potential : Africa’s rare earth resources hold the key to its future economic development and its role in the global energy transition. By strategically managing these resources, African nations can secure a significant position in global supply chains, foster industrialization, and drive technological advancements. However, this requires robust governance, sustainable practices, and equitable partnerships that prioritize the long-term well-being of the continent and its people.
Africa’s REEs are not just a resource for the continent but a crucial part of the global geopolitical landscape. As demand for these minerals continues to grow, Africa’s role as a supplier will become increasingly important. The continent faces both significant opportunities and risks in managing its REE wealth. By navigating these geopolitics carefully, African nations can harness their resources for sustainable development, economic growth, and greater political influence on the world stage.