African Mines to Supply Nearly 10% of Global Rare Earths by 2029
African mines are set to supply almost 10% of the world’s rare earth elements within the next five years, climbing from zero today and introducing new players into a market currently dominated by China.
According to Benchmark Mineral Intelligence, eight mines in countries like Tanzania, Angola, Malawi, South Africa, and Uganda are expected to start production by 2029, contributing to 9% of the global supply.
China currently mines about 70% of the world’s rare earths and refines almost all of them. These 17 elements are essential for producing magnets used in electric vehicles, wind turbines, and military equipment.
China has the ability to control the market by restricting production and exports, as evidenced by its ban on overseas sales of several rare-earth technologies in December.
The US and its allies are working to develop supply chains independent of China. Benchmark Mineral Intelligence reports that while 37% of the future African supply is already committed to Chinese buyers, the remaining production is “potentially available for ex-China and Western rare earths companies.” Europe is notably expanding its processing facilities outside of China.
“China will not be the only beneficiary of Africa’s active, low-cost pipeline, which will also become strategically valuable for the EU and US,” the report states.
The companies developing these African rare earth mines, such as Pensana, Rainbow Rare Earths, and Mkango Resources, are registered in Western countries and are not Chinese-owned.
However, China’s market remains crucial for some miners to ensure the viability of their projects due to the slow expansion of processing capacity in the West.
