KEY POINTS
- Africa urged to move beyond mining into critical mineral processing.
- DLE and low-temperature lithium technologies offer major opportunities.
- Governments should fund commercialisation and require technology transfer.
Countries and companies in the Global South have been urged to move beyond the extraction of lithium and rare earth minerals and invest more aggressively in processing, refining and recycling, as global demand for critical minerals is expected to surge in the coming decades.
A new report by researchers from Duke University and the University of Cape Town (UCT) has identified several commercially promising technologies and investment opportunities that could help resource-rich countries capture more value from their mineral resources.
The report maps research and development opportunities across the lithium and rare earth value chains and provides practical recommendations for governments, mining companies and investors seeking to build domestic processing capacity.
The findings are also expected to contribute to the work of the Council for Critical Minerals Development in the Global South, a collaborative platform established in anticipation of rising demand for critical minerals.
Global demand expected to soar
The International Energy Agency (IEA) estimates that achieving global climate targets could require lithium demand to increase eightfold by 2040, while demand for rare earth elements used in permanent magnets could double over the same period.
However, Duke and UCT argue that the biggest challenge may not be mining enough minerals but processing them after they are extracted.
China currently dominates the midstream of both supply chains, controlling an estimated 60% to 70% of lithium conversion and more than 85% of rare earth separation.
This concentration gives countries and companies controlling processing facilities significant influence over prices, supply security and access to downstream markets.
For resource-rich countries in Africa and elsewhere in the Global South, the researchers say the opportunity is therefore to develop processing capabilities instead of remaining primarily exporters of unprocessed minerals.
Duke and UCT identified five key priorities for companies considering investments in critical mineral processing.
First, investors should target processing chokepoints where significant value is added and where supply is highly concentrated.
Second, companies should focus on technologies moving from pilot plants to demonstration facilities, where commercial opportunities are becoming clearer.
Third, lithium producers should consider emerging technologies that can improve on conventional evaporation ponds.
