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Rare Earths: Europe Integrates African Project into Supply Strategy

Friday, 28 March 2025 12:52
Rare Earths: Europe Integrates African Project into Supply Strategy

(Ecofin Agency) - Africa is gearing up to compete with China in rare earths. Projects in Malawi, Tanzania, and Namibia are driving this shift, with Malawi’s Songwe Hill mine set to supply a Polish processing plant backed by the European Union.

On March 25, the European Commission listed 47 projects to secure critical raw materials for the EU. Poland’s Pulawy rare earth separation plant, sourcing from Songwe Hill in Malawi, was picked.

This listing opens doors for financing, regulatory shortcuts, and buyer introductions. Permits for Pulawy could take just 15 months instead of the usual 5-10 years. Observers say Africa’s mineral wealth could help Europe depend on China less. With 30% of global critical mineral reserves, Africa holds immense potential. Mkango Resources, which operates Songwe Hill, must secure funding to start production.

Pulawy aims to produce 2,000 tonnes of neodymium and praseodymium oxides annually, alongside 50 tonnes of dysprosium and terbium oxides. These rare earth metals, essential for wind power and battery industries, will come from rare earth carbonate produced at Malawi's Songwe Hill mine by Mkango Resources. A 2022 feasibility study confirmed that Songwe Hill can supply 8,425 tonnes of rare earth carbonate annually, over 18 years.

Collaborations similar to the one announced on March 25 highlight Africa-Europe ties in critical minerals, but commercial deals tell a sharper story. Companies active in African projects, such as Traxys, have negotiated graphite supply agreements with European customers in recent years.

Most of these partnerships rely on exporting raw materials from Africa to Europe. This model faces growing criticism across Africa as African governments demand local industrialization, challenging the export-first approach that stunts the continent’s economic growth.

This article was initially published in French by Emiliano Tossou

Edited in English by Ange Jason Quenum



 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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