In 2025, the global imperative for cleaner energy, electric vehicles, hydrogen technology, and decarbonised industrial processes is putting critical minerals at centre stage. Platinum group metals (PGMs) such as platinum and palladium remain essential components in catalytic converters, hydrogen fuel cells, and industrial catalysts. According to the World Platinum Investment Council, the global platinum market is forecast to suffer a supply deficit of around 539,000 troy ounces in 2025, as demand remains high and supply growth remains constrained.
Similarly, copper, cobalt, lithium, rare earth elements and graphite are demanded in growing volumes to build wind turbines, batteries, solar panels and the supporting infrastructure. Global supply chains are being tested by geographic concentration of reserves, high capital costs, environmental regulations, and social license issues. Investors and governments alike are increasingly considering not just how many minerals are available, but whether they can be mined, refined, transported and used under socially and ecologically acceptable terms.
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Africa is uniquely placed to meet parts of this demand. The continent holds a large share of global reserves of many critical minerals. The Democratic Republic of Congo remains a dominant producer of cobalt; Southern Africa has vast PGM resources; West Africa, East Africa and the Horn are rich in lithium, manganese, and rare earths.
Several major investments made in 2024 illustrate this growing interest. Global mining firms, together with regional finance institutions, have committed funds to both exploration and downstream processing. For example, the Africa Finance Corporation (AFC) has backed projects such as a phase-three expansion of Kamoa Copper (DRC) with a US$200 million loan, while also investing in Gécamines (DRC), Thor Explorations (Nigeria) and Nyanza Light Metals (South Africa). There has also been strong growth in graphite investments: in Tanzania, POSCO committed US$40 million in 2024 into Black Rock Mining’s Mahenge graphite project; in Madagascar, NextSource Materials secured US$91 million from the IFC to expand output at the Molo mine from 17,000 to 150,000 tonnes per annum.
Another example is Sinomine Resources in Zimbabwe. The company invested about US$180 million in acquiring the Bikita Lithium Mine, intending to enhance lithium production and dual processing operations. In Zambia, Sinomine also acquired the Kitumba copper mine in 2024 and announced plans for about US$560 million in investment for mining, beneficiation, and smelting infrastructure, with production aimed to start by September 2026.
Why the Giants Persist
Global mining corporations are not investing out of altruism. The rationale is logical and strategic:
The first driver is supply scarcity. For instance, PGMs are forecast to experience contraction in supply unless new mining capacity is added or existing operations extended. Valterra’s CEO has warned that global primary PGM production may shrink by 15-20% by the end of the decade unless new investments are forthcoming.
A second factor is demand trajectories. Even as electric vehicles proliferate, many hybrid systems and hydrogen technologies require PGMs. Automakers and energy companies thus continue to depend on these metals. Demand for copper, lithium, cobalt, and graphite is projected to increase sharply to meet battery, grid storage and renewable power generation needs globally. African producers of these resources are thus well-positioned.
Thirdly, firms are recognising that value chains matter. It is no longer sufficient to extract raw minerals and export them. Investors are increasingly interested in refining, processing, possibly manufacturing closer to the source. Local beneficiation, smelters, and refineries are being considered or built, sometimes with finance from development banks, sovereign wealth funds, or foreign investors. This trend helps mitigate risk from logistics, tariffs, and supply chain disruptions, while capturing more economic benefit for both firms and host countries.
Finally, geopolitical risk and regulatory pressure are also pushing global miners to look toward Africa. Many countries, especially in Europe, the U.S., and Asia, are imposing stricter ESG (Environmental, Social, Governance) norms, requiring transparency, traceability, and low environmental impact. Africa, with its varied regulatory regimes and large resource bases, offers both risk and opportunity — firms that navigate regulation, ensure community engagement, and align with global norms may gain significant competitive advantage.
Tharisa Plc, a South African miner, exemplified this trend by announcing a US$547 million investment over the next decade to convert its open-pit PGM and chrome operations in the Bushveld Complex to underground mining. The aim is to extend mine life, access richer ore bodies, begin first shaft production by the second quarter of 2026, and ramp up outputs to around 200,000 ounces of PGMs annually plus over 2 million tonnes of chrome concentrate.
However, Tharisa is only one among many. Global firms such as Anglo American are still signalling strong interest in Africa. In early October 2025, the CEO of Anglo American reaffirmed that despite divestments in some sectors (such as coal and platinum in certain jurisdictions), the company sees Africa as essential in supplying copper, cobalt, lithium and rare earths, which are all critical for clean energy technologies. In the DRC and Zambia, investments to expand copper output (for example at Tenke Fungurume) are underway. Chinese, South Korean, and other international investors are aggressively partnering in these projects.
Investments in critical minerals do not occur in a vacuum. Global climate goals, such as those set in the Paris Agreement, the United Nations Sustainable Development Goals, and other multi-lateral accords, increasingly require not only emissions reductions but also responsible sourcing.
Institutions such as the International Energy Agency, IRENA and the OECD monitor trends in critical minerals and set out policy recommendations; many donor and development financing bodies attach ESG conditions or criteria for community consultation, environmental impact, and labour practices. Additionally, regional frameworks in Africa, such as the African Continental Free Trade Area (AfCFTA), promise to foster integrated value chains, reducing dependency on external processing and increasing intra-African trade of processed minerals and downstream manufacturing.
Development banks such as the African Development Bank, the Africa Finance Corporation, and export-import banks are also stepping in, offering loans or equity to support not just mining, but rail, power, port, smelter, and refining infrastructure essential for scaling up production sustainably. For instance, the Lobito Corridor, a major rail-logistics project involving Angola, DRC, and Zambia features in several financing packages designed to facilitate mineral exports.
Risks Remain: Barriers Africa Must Address
Investors face a variety of risks in African critical minerals mining. Infrastructure gaps, such as unreliable power supplies, inadequate transport, water scarcity can raise costs and delay timelines. Regulatory uncertainty in certain countries, land rights disputes with local communities, environmental opposition, and geopolitical risk all weigh heavily.
Market volatility is also a concern. Prices of metals, exchange rates, import and export tariffs, and shifts in global demand (including competition from non-conventional sources and recycling) can expose mining operations to sudden swings in profit margin.
Furthermore, while African countries are seeking greater benefit from mining via beneficiation and downstream processing, capacity for refining and processing remains limited in many regions. Building this capacity requires both heavy investment and reliable infrastructure, as well as skilled labour.
Why the moment is critical
The convergence of demand growth for clean energy, global tightening of supply sources, regulatory and ESG pressures, and advances in mining and processing technologies has created a watershed moment for critical minerals. Those firms that move sooner, with robust planning, strong regulatory compliance, environmental and social responsibility, and good local partnerships, are likely to reap both financial return and long-term resilience.
For Africa, this moment presents a chance not just to supply minerals, but to capture more value: in refining, in local jobs, in infrastructure, in sustainable development. How well the continent and its leaders rise to this challenge may define Africa’s contribution to the global energy transition, and its own path toward lasting economic transformation.
