EU-Africa Critical Minerals Partnership Must Go Beyond Extraction

As Europe intensifies efforts to secure critical minerals needed for its green, digital and industrial transitions, experts are urging the European Union (EU) to rethink its engagement with Africa by moving beyond the extraction of raw materials and investing in local value addition, industrialisation and sustainable development.

A new policy analysis argues that while Africa’s vast reserves of critical minerals are central to Europe’s supply chain diversification strategy, long-term partnerships will only succeed if they create tangible economic and social benefits for African countries.

Europe Seeks to Diversify Critical Mineral Supply Chains

The EU’s transition to clean energy technologies, electric vehicles and advanced manufacturing has significantly increased demand for critical raw materials such as lithium, cobalt, nickel and rare earth elements.

Global demand for lithium alone is expected to increase by more than 350% by 2040, while Europe remains heavily dependent on a limited number of suppliers for processing and refining. China currently dominates global mineral processing capacity, highlighting the need for the EU to diversify its supply chains and reduce strategic vulnerabilities.

To address this challenge, the EU introduced the Critical Raw Materials Act (CRMA), which aims to secure reliable sources of critical minerals through partnerships with resource-rich countries, including several in Africa.

Africa at the Centre of Europe’s Critical Minerals Strategy

Africa has emerged as a strategic partner due to its abundant deposits of minerals essential for the global energy transition.

The EU has already signed critical minerals partnerships with South Africa, Namibia, Rwanda, Zambia, and the Democratic Republic of the Congo (DRC). In addition, strategic mining projects have been identified in South Africa, Zambia and Malawi under the CRMA framework.

These initiatives are supported by the EU’s Global Gateway investment programme, which seeks to mobilise €300 billion in public and private investment for infrastructure and sustainable development projects worldwide.

However, analysts argue that most current investments remain focused on mineral extraction, while processing, refining and manufacturing activities continue to take place largely outside Africa.

Why Local Value Addition Matters

African governments are increasingly seeking to ensure that their mineral wealth contributes to domestic industrialisation, job creation and economic diversification rather than simply exporting raw materials.

The commentary notes that Europe also has a strategic interest in supporting this approach. Partnerships that promote local processing and manufacturing can strengthen long-term supply chain resilience while making European investment more attractive compared with competing offers from China, the United States and Gulf countries, all of which have expanded their presence in Africa’s mining sector.

Supporting local value addition could also help African countries capture a larger share of the economic benefits generated by the growing global demand for critical minerals.

Investment Challenges Remain

Despite the growing number of bilateral agreements, private investment in Africa’s higher-value mining activities remains limited.

Investors continue to cite challenges including inadequate transport and energy infrastructure, high financing costs, skills shortages and regulatory uncertainty in several African markets.

The analysis also argues that current EU initiatives are fragmented and lack sufficient coordination between member states, development finance institutions and private investors.

Without stronger commercial incentives such as long-term purchasing agreements, demand guarantees and coordinated financing mechanisms, investment in mineral processing and refining is likely to remain below expectations.

Sustainability and Community Benefits

The report also highlights the environmental and social risks associated with mining expansion.

Large-scale mining projects can contribute to deforestation, pollution and increased pressure on energy resources if not properly managed. Experts argue that stronger environmental, social and governance (ESG) standards should be integrated into all EU-supported projects.

The analysis recommends greater community participation in project planning, transparent governance and stronger safeguards to ensure that mining revenues contribute to local development rather than benefiting a small group of stakeholders.

A New Model for EU-Africa Cooperation

To build more resilient and competitive supply chains, the report recommends that the EU expand its cooperation beyond mining by investing in mineral processing, refining, battery recycling, e-waste recovery and skills development across Africa.

It also calls for better coordination between the EU’s Critical Raw Materials Act, Global Gateway investments and member state initiatives to create commercially viable projects that deliver long-term benefits for both Europe and Africa.

As global competition for critical minerals intensifies, the future of EU-Africa cooperation is likely to depend not only on securing access to mineral resources but also on creating partnerships that support industrial growth, sustainable development and shared economic prosperity across the continent.