EU targets African critical minerals but faces urgent need to adapt policies for lasting partnerships

The European Union is intensifying efforts to tap into Africa’s vast reserves of critical minerals, yet experts warn that Brussels needs to do significantly more to build sustainable partnerships across the continent.

Last week, the European Commission expanded its strategic project list under the Critical Raw Materials Act (CRMA) by adding 13 new initiatives, bringing the total to 60.

Among these, four projects are located in Africa, signaling growing interest but also underscoring the complexities ahead.

Two of these African projects focus on rare earth elements, essential for manufacturing electric vehicles and renewable energy technologies.

The Songwe Hill mine in Malawi, operated by Mkango Resources, aims to produce 8,425 tons of rare earth carbonate annually for 18 years.

South Africa’s Zandkopsdrift project, owned by Frontier Rare Earths, targets a yearly output of 17,000 tons, including 4,000 tons of high-grade magnet rare earths.

Madagascar’s Maniry graphite project, led by Evion Group, plans initial production of 35,000 to 45,000 tons, with ambitions to increase to 50,000–60,000 tons per year after three years.

Zambia hosts a cobalt refinery under development by Kobaloni Energy, aiming to produce 6,000 tons of cobalt sulfate annually, a crucial battery ingredient, with potential to double that output.

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Being on the CRMA list allows these projects to apply for financing from an EU consortium comprising the European Investment Bank, European Bank for Reconstruction and Development, national development banks, and private investors.

The European Commission estimates that all 60 projects together will require about €5.5 billion ($6.3 billion) in investments.

In return, supported firms must commit to supplying some or all of their production to European markets.

Africa Holds Roughly 30% of the World’s Critical Mineral Reserves, presenting the EU with an opportunity to diversify its supply chains and reduce dependency on dominant players like China.

However, China, the United States, and Gulf countries are also aggressively pursuing African mineral partnerships, increasing competition.

Meanwhile, African governments are demanding more than just raw material exports.

Nations such as the Democratic Republic of Congo, Zimbabwe, and Namibia are enforcing stringent local content rules, banning exports of unprocessed minerals and pushing investors to develop on-site processing and refining facilities.

Theophilus Acheampong, an economist at the European Council on Foreign Relations (ECFR), emphasized in a December 2024 report that local content rules are “non-negotiable” for Europe to maintain access to Africa’s critical resources.

A follow-up ECFR report released in May 2025, titled “Too Clean to Compete: Why Strict Standards Keep Europeans Out of African Minerals”, calls on Brussels to reconsider its approach.

The report argues that the EU’s rigid green finance rules exclude mining from sustainable finance frameworks, limiting funding for mineral extraction projects essential to Europe’s energy transition.

It also criticizes the Carbon Border Adjustment Mechanism (CBAM), which penalizes carbon-intensive imports.

While designed to protect European industries, CBAM risks undermining Africa’s efforts to expand local mineral processing, potentially deterring investment from both African and European stakeholders.

If the EU wants to move beyond a marginal role in Africa’s mining sector, it must increase financial support, adjust its regulatory framework, and genuinely listen to African partners’ demands.

Without these changes, Europe risks losing ground to more flexible competitors and missing out on critical resources needed for its green ambitions.

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