Mint Explainer: Can Africa solve world's critical mineral challenge?

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The inclusion of the African Union into the G20 Grouping as its 21st member has given a new voice to the global south, providing an opportunity to analyse the African continent's importance in ensuring global critical mineral security. This Mint explainer examines how countries are racing to tap into this resource-rich continent to reduce their reliance on China and strengthen their critical minerals stockpile. The global shift toward low-carbon economies and ambitious net-zero emission targets has driven the race for critical minerals.

Rare earth elements, as well as metals like aluminium, copper, and cobalt, are essential for achieving emission-free goals and advancing technologies such as electric vehicles, renewable energy, and electric grids. These minerals also play a crucial role in everyday items like stainless steel and electronics. According to the IEA, the energy sector has played a pivotal role in tripling the overall demand for lithium from 2017 to 2022, with cobalt witnessing a 70% jump in demand and nickel seeing a 40% rise.

Consequently, the market for energy transition minerals reached an impressive $320 billion in 2022 and is projected to grow rapidly, making it a focal point for the global mining industry. However, a significant challenge arises because the world's mineral reserves are concentrated in specific regions. For instance, over 70% of platinum is mined in South Africa, 70% of cobalt in the Democratic Republic of Congo, more than 60% of natural graphite in China, nearly 50% of nickel in Indonesia, and almost 50% of lithium in Australia.