Africa’s Rare Earth Minerals Boom: Mining Growth, Global Impact & Economic Potential

Analysis in Brief

The year 2025 is expected to mark a turning point in Africa’s rare earth minerals industry, with the continent poised to take a more prominent role in the global supply chain. Forecasts indicate that Africa’s contribution to global rare earth mineral production could reach 10% within the next five years. This anticipated growth stems from the launch of new mining operations in Malawi, South Africa, and other countries, accelerating the exploitation of the continent’s vast untapped reserves.

The Unique Nature of Rare Earth Minerals

Although rare earth minerals are widely distributed throughout the Earth’s crust, they are rarely found in high enough concentrations to be economically viable for mining. China dominates the global market, currently producing 70% of the world’s rare earth supply due to its advantageous geological formations. However, Africa is home to substantial deposits of these minerals, with some estimates suggesting the continent holds nearly 30% of the world’s total reserves.

In 2025, two major African mining projects—Songwe Hill in Malawi and Steenkampskraal in South Africa—are set to commence full-scale production. These projects represent significant progress in Africa’s ability to harness its mineral wealth, paving the way for greater contributions to the global supply of these critical resources.

The Role of Rare Earth Minerals in Modern Technology

Rare earth minerals contain 17 different elements that are vital to various high-tech applications. Their malleability and unique physical properties make them indispensable in numerous industries. These elements play a crucial role in:

• Medical technology: used in MRI machines, laser scalpels, and certain pharmaceuticals.
• Consumer electronics: essential components in mobile phones, computers, and tablets.
• Aerospace and defense: critical for satellite communications, precision-guided weaponry, and aircraft manufacturing.
• Green energy solutions: integral to the production of solar panels, electric vehicle batteries, and wind turbines, leading to their classification as transition minerals essential for shifting from fossil fuels to renewable energy sources.

Africa’s Expanding Role in Global Mineral Markets

While Africa possesses substantial reserves of critical minerals, the continent has yet to fully capitalize on the economic potential of these resources. According to estimates from the United Nations Conference on Trade and Development (UNCTAD), African nations are currently generating only 40% of the revenues they could potentially earn from their natural mineral wealth.

Stabilized Prices and Favorable Market Conditions

Despite China’s dominance in rare earth mineral production, its recent reduction in output—partly due to the rising domestic demand for humanoid robotics—has contributed to a 2% increase in global prices as of January 2025. This trend coincides with an increase in African mining investments, making the industry even more attractive to global investors.

With worldwide demand for rare earth minerals projected to quadruple by 2030, Africa is well-positioned to benefit from this surge. New mines in Angola, Malawi, South Africa, and Tanzania are expected to become operational by 2029, collectively supplying an estimated 9% of the global market. This marks a significant leap from Africa’s negligible contribution of less than 1% in 2020.

However, market fluctuations, such as oversupply and undersupply, will need to be carefully managed. For example, an early 2025 surplus of neodymium-praseodymium oxide—essential for electronic magnets—has led to a drastic reduction in production, from 5,400 tonnes in 2024 to just 500 tonnes in 2025. At the same time, the demand for neodymium and praseodymium for electric vehicles and wind turbines is projected to grow by 15% by the end of 2025, potentially creating supply shortages in the near future.

Major African Producers of Critical Minerals

Several African nations are already major players in the global mineral market:

Economic and Industrial Benefits of Rare Earth Mineral Production

Despite China’s continued dominance, Africa’s emerging rare earth minerals industry presents a unique opportunity for economic growth and industrial expansion. Notably, in December 2024, China ceased exporting certain rare earth-based products to meet domestic demand, creating gaps in the global supply chain. While Western economies and manufacturers remain reliant on China, Africa has the potential to fill some of these gaps.

African governments are increasingly focusing on refining and processing minerals domestically rather than exporting them in raw form. In 2023, Zimbabwe set a precedent by banning the export of unprocessed lithium, requiring foreign buyers to establish battery manufacturing facilities within the country. Similar policies could be adopted for rare earth elements to ensure Africa benefits from the entire value chain.

Moreover, African nations are leveraging the African Continental Free Trade Area (AfCFTA) to build intra-continental partnerships aimed at developing downstream industries that can process and refine these minerals for domestic and international markets. This aligns with European and U.S. initiatives to reduce dependency on Chinese rare earth mineral supplies, further driving investment into Africa’s mining and refining sectors.

Investment and Infrastructure Development

Unlike many other mining projects in Africa, the continent’s rare earth mineral operations are largely controlled by Western corporations rather than Chinese entities. Major players include Mkango Resources, Pensana PLC, and Rainbow Rare Earths. Additionally, Australia’s Lindian Resources is expected to begin production in Malawi in 2025, while Ionic Rare Earths Limited is set to launch operations at Uganda’s Makuutu Rare Earths Project in 2026.

Beyond mining and refining, the sector’s growth will have a ripple effect on other industries, generating jobs in logistics, transportation, and supply chain services. Improved rail and road infrastructure to support mining activities will further contribute to Africa’s long-term economic and industrial development.

Key Takeaways:

• Africa’s rare earth mineral production is set to increase from negligible levels in 2020 to 10% of global supply by 2030.
• 2025 is a crucial growth year for the sector, with new mining projects launching across Southern Africa.
• African policymakers aim to extract greater economic benefits by focusing on refining, manufacturing, and industrial development.
• The global push for renewable energy and high-tech industries presents a lucrative opportunity for Africa’s rare earth mineral market.
• Infrastructure improvements, job creation, and strategic foreign investments will play a critical role in securing Africa’s position in the global supply chain.

As Africa continues to harness its vast mineral resources, the continent has the potential to become a key player in the global rare earth minerals industry, transforming its economic landscape while supporting the global transition to renewable energy and advanced technology.

AR Managing Editor (2025). Africa’s Rare Earth Minerals Boom: Mining Growth, Global Impact & Economic Potential. Retrieved from https://www.africanresearchers.org/africas-rare-earth-minerals-boom-mining-growth-global-impact-economic-potential/