A New Frontier in the Rare Earth Race- 

As the 21st century unfolds, the global race for rare earth elements (REEs)—the essential materials powering clean energy, advanced electronics, and defense technologies—has intensified.

For decades, China has held an overwhelming grip on the world’s rare earth industry, refining over 90% of global output.

However, as the United States, Europe, Japan, and others seek to reduce their dependence on Chinese supply chains, attention has turned toward Africa—a continent rich in mineral resources yet underdeveloped in refining and high-tech industries.

The question arises: Can Africa become the next major rare earth hub?

The answer lies at the intersection of geology, governance, geopolitics, and global industrial strategy. Africa possesses the raw potential—vast deposits of REEs across several countries—but transforming this potential into a globally competitive hub requires deliberate investment, strong policy frameworks, and industrial coordination.

Africa’s Geological Wealth: Hidden Giants Beneath the Soil

Africa is no stranger to mineral wealth. The continent holds an estimated 30% of the world’s mineral reserves, including vast untapped deposits of rare earths. According to geological surveys, countries such as Burundi, Tanzania, Malawi, Namibia, South Africa, Madagascar, and the Democratic Republic of Congo (DRC) have proven REE reserves.

For example:

• Tanzania’s Ngualla Project (by Peak Rare Earths) is one of the world’s highest-grade neodymium-praseodymium (NdPr) deposits.

• Malawi’s Songwe Hill project, developed by Mkango Resources, is among the most advanced rare earth ventures in Africa.

• South Africa’s Steenkampskraal Mine once supplied thorium and rare earths during the mid-20th century and could be revitalized with modern technology.

• Madagascar and Burundi also host rare earth-bearing carbonatite complexes, containing neodymium, dysprosium, and terbium—vital for permanent magnets used in EVs, wind turbines, and defense systems.

However, Africa’s role in the rare earth industry has largely been limited to raw material extraction rather than refining or manufacturing. China, in contrast, focused early on building the entire value chain—from mining to magnet manufacturing, giving it strategic dominance.

To emerge as a major hub, Africa must move beyond extraction to processing, refining, and high-value applications.

Lessons from China: The Power of State Strategy

China’s dominance in rare earths did not happen by accident. Beginning in the 1980s, Beijing implemented a state-driven industrial strategy emphasizing vertical integration, export control, and environmental flexibility. The Chinese government identified REEs as a strategic resource, offering subsidies, cheap loans, and tax incentives to producers.

Africa can learn from this model:

1. Long-term Policy Commitment:
   China planned decades ahead, accepting short-term losses for long-term strategic gain. African states can emulate this by developing 20–30-year resource strategies that link mining with industrialization goals.

2. Investment in Refining Technology:
   China poured resources into refining and metallurgical R&D. African nations can partner with global technology providers to establish regional refining hubs, reducing the need to export raw ore.

3. Environmental Regulation as a Competitive Tool:
   While China’s early environmental laxity gave it a cost advantage, Africa can differentiate itself by promoting clean, traceable, and sustainable rare earth production, appealing to Western markets increasingly focused on ESG standards.

4. State-Private Sector Synergy:
   China leveraged both state-owned enterprises (SOEs) and private firms under national coordination. African countries can replicate this by empowering local companies while maintaining state oversight to ensure value retention.

Geopolitical Shifts: The World’s Search for Alternatives

The world’s growing unease with China’s monopoly is accelerating investment diversification. The U.S. Inflation Reduction Act (IRA), EU Critical Raw Materials Act, and Japan-Australia strategic partnerships are all designed to build non-Chinese supply chains. Africa, strategically located between major markets and endowed with critical minerals, stands to benefit immensely.

Western governments and corporations are already showing interest:

• The U.S. and EU have initiated talks with African countries on critical mineral cooperation.

• Australia’s Lynas Corporation and Canada’s Mkango Resources are exploring African partnerships.

• The Africa-EU Raw Materials Partnership aims to promote responsible sourcing and local value addition.

If managed properly, Africa could become the third pole in global rare earth production—alongside China and a Western alliance led by the U.S. and its partners.

Challenges: Why Africa Isn’t There Yet

Despite this opportunity, major challenges remain:

1. Infrastructure Deficit:
   Rare earth processing requires stable electricity, clean water, and advanced chemical handling—all of which are limited in many African regions. Without industrial zones and ports tailored for mineral refining, costs remain high.

2. Lack of Refining Capacity:
   Africa currently has no large-scale rare earth refineries, forcing raw materials to be shipped abroad for processing, often to China itself.

3. Policy Instability and Corruption:
   Frequent regulatory changes, political instability, and opaque mining contracts deter long-term investors. Countries must establish transparent legal frameworks and consistent taxation policies.

4. Environmental Risks:
   Refining rare earths generates radioactive waste and chemical byproducts. Without strict environmental controls, Africa risks the same contamination that plagued parts of China.

5. Human Capital Gap:
   Africa needs trained geologists, metallurgists, and engineers to develop its rare earth sector. This requires investment in technical education and research partnerships.

The Strategic Path Forward

For Africa to rise as a rare earth hub, it needs an integrated continental and regional strategy, driven by both governments and private investors. Key steps include:

1. Developing African Rare Earth Consortia:
   Create joint ventures among African nations (e.g., Tanzania, Malawi, Namibia) to pool expertise, attract financing, and coordinate infrastructure.

2. Building Refineries and Technology Parks:
   Establish regional refining hubs near ports or industrial zones—potentially in South Africa or Namibia—to process ore from across the continent.

3. Local Content and Value Addition:
   Enforce policies that require companies to refine or process locally, not just extract and export. This keeps profits and jobs within the continent.

4. Strategic Alliances with Non-Chinese Partners:
   Collaborate with countries like Japan, South Korea, and the EU, which seek stable, ethical supply chains. Africa could supply materials under fair trade and environmental standards.

5. Establishing a Pan-African Critical Minerals Agency:
   Similar to OPEC, such a body could coordinate pricing, quotas, and environmental standards, giving Africa collective bargaining power.

6. Investing in Education and R&D:
   Create specialized institutes for rare earth metallurgy, chemistry, and materials engineering, potentially supported by global universities.

Africa’s Window of Opportunity

Africa stands at a crossroads. It has the geological abundance to become a rare earth powerhouse but lacks the infrastructure, policy coherence, and industrial ecosystem to fully capitalize on it. As global powers scramble to secure non-Chinese supplies, Africa has a once-in-a-generation opportunity to build its own strategic advantage.

If the continent can align its policies, leverage partnerships wisely, and prioritize industrial value addition, it can transition from being merely a supplier of raw minerals to a producer of strategic materials that underpin the global clean energy and defense economy.

The future of rare earths may not belong to China alone—but whether Africa claims its share will depend on bold leadership, smart policy, and visionary investment.