KEY POINTS
- Rare earth elements (REEs) are vital for technologies like smartphones, electric vehicles, and renewable energy systems.
- Africa hosts substantial untapped REE reserves, offering the potential to reshape the global supply chain.
- Challenges include environmental risks, governance issues, and competition from dominant producers like China.
Rare earth elements (REEs) have become among the most coveted resources in the world economy.
Crucial for technologies such as smartphones, electric vehicles, wind turbines, and defense systems, REEs play a central role in the global drive for technological and green energy revolutions (African Development Bank Group, 2021).
REEs consist of a collection of 17 chemical elements that usually appear together in natural geological settings.
The collection of rare earth metals is divided into two separate sub-categories, the light rare earth elements (LREE) including scandium (Sc) and the elements found between lanthanum (La) and samarium (Sm).
In addition, heavy rare earth elements (HREE) such as yttrium (Y) and the substances situated between europium (Eu) and lutetium (Lu) (African Development Bank Group, 2021).
Nations around the globe are intensifying initiatives to ensure reliable supplies of REEs because of their importance in facilitating green technologies like solar panels, electric cars, and energy-efficient batteries (International Renewable Energy Agency (IRENA)).
In 2023, global rare earth mine production was estimated at 350,000 tons of rare earth oxide (REO) equivalent (Mining Technology, 2025).
China presently leads the world in rare earth production, making up more than 69% of global output and processing close to 90 percent of the globe’s rare earth elements (Mining Technology, 2025).
Yet, geopolitical conflicts and supply chain interruptions have forced countries to vary their sources, placing Africa in the limelight.
Africa, rich in extensive mineral resources, is progressively seen as a prospective leader in the production of rare earth elements.
With vast untapped reserves, the continent holds the potential to reshape the global supply chain.
However, the exploitation of these resources also brings challenges related to environmental sustainability, governance, and equitable economic benefits.
Africa’s REEs reserves
Africa hosts substantial reserves of rare earth elements, with important deposits found in multiple nations. A few of the most notable locations are:
South Africa
South Africa is home to one of the most abundant rare earth deposits located at the Steenkampskraal mine in the Western Cape.
This mine is especially remarkable for its rich deposits of thorium, neodymium, and praseodymium.
With a long history of rare earth mining, South Africa is ideally situated to emerge as a key supplier, particularly as the need for renewable energy technologies increases.
Madagascar
Madagascar’s potential for rare earth elements is underscored by the Ambatovy project, which emphasizes the extraction and processing of nickel and cobalt.
Madagascar’s Tantalus Rare Earth Project is another promising site. With a significant deposit of thousands of metric tons of rare earth oxides, the island nation has attracted interest from international investors like China.
Malawi
Malawi’s Songwe Hill project serves as a notable example of the nation’s rare earth capabilities (Mining Review Africa, 2016).
The deposit contains high levels of neodymium and dysprosium, essential elements for manufacturing permanent magnets utilized in electric vehicles and wind turbines.
Burundi
The Gakara project in Burundi ranks as one of the world’s highest-grade rare earth deposits (NS Energy, 2020). It mainly consists of bastnaesite and monazite, which are minerals abundant in REEs.
Although the project has significant potential, it encounters difficulties stemming from political instability and governance problems, which have obstructed steady operations and investor trust.
Opportunities for Africa
The opportunities presented by REEs include, but are not limited to, the following:
Economic expansion
The advancement of rare earth mining initiatives can fuel economic expansion by generating employment, drawing foreign investment, and producing export income.
For nations abundant in resources, REEs provide a means to diversify their economies and lessen reliance on conventional commodities such as oil and gold.
Progress in technology
Investing in rare earth mining can stimulate innovation and enhance skill development. Creating processing centers and research organizations can position Africa as a frontrunner in the worldwide REE supply chain.
Collaborative alliances
African countries can utilize their rare earth resources to establish strategic alliances with international entities.
Partnerships with nations such as China, the United States, and the European Union can improve technology transfer and infrastructure growth.
Transition to renewable energy
Rare earth elements are essential for renewable energy technologies. By utilizing its REE reserves, Africa can significantly contribute to the worldwide shift towards sustainable energy systems while also tackling its own energy shortages.
Challenges and risks
The challenges and risks associated with REEs include, but are not limited to, the following:
Environmental issues
The extraction and processing of rare earth elements may lead to significant environmental consequences, such as soil degradation, water contamination, and radioactive waste.
Tackling these problems necessitates strict environmental regulations and sustainable extraction methods.
Management and corruption
Ineffective governance and corruption present major obstacles to the fair utilization of rare earth resources.
Maintaining transparency in licensing, revenue oversight, and community involvement is crucial to avoid resource mismanagement.
Worldwide rivalry
Africa encounters strong competition from well-established rare earth producers such as China, which leads the worldwide market.
Establishing competitive mining and processing capabilities will necessitate considerable investment and expertise.
Community displacement
Mining operations frequently result in the displacement of local populations and interruptions to conventional ways of living.
It is essential for preserving social harmony that impacted communities receive equitable compensation and advantages from mining initiatives.
Initiatives to enhance Africa’s rare earth sector
Collaboration at the regional level: African countries are exploring regional collaborations to combine resources and skills. The African Union’s Agenda 2063 also highlights the importance of cooperation in mining and sustainable development to enhance economic advantages.
Regulation and policy: Governments are enacting strategies to draw foreign investment while maintaining control over resources and promoting environmental sustainability. For example, Malawi’s Mines and Minerals Policy has elements that support local beneficiation and value enhancement.
Global collaborations: International companies are progressively working together with African nations to access their REE deposits. The European Union recognizes Africa as a key ally in diversifying its REE supply chain, supporting exploration initiatives and facilitating technology transfer.
Regional value enhancement: To enhance advantages, African countries are emphasizing value addition through the establishment of local processing facilities. For example, South Africa is putting money into rare earth refining facilities to lessen reliance on exporting unprocessed materials.
