Rare Earth Exchanges

Report: Europe and Africa Need to Cooperate to Realize Rare Earth Mineral Value & Mitigation of Dependence on China

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Highlights

  • Europe and Africa seek mutually beneficial partnerships in the critical raw materials sector, emphasizing local content policies and value addition.
  • The policy brief highlights Africa’s growing geopolitical leverage and the need for strategic cooperation beyond traditional extraction models.
  • Regional integration and technology transfer are key strategies for developing sustainable critical raw materials engagement between Europe and Africa.

The recent policy brief in European Council of Foreign Relations (opens in a new tab) by Theophilus Acheampong examines opportunities and challenges for cooperation between Europe and Africa in the critical raw materials (CRMs) sector. It emphasizes the strategic importance of Africa’s CRM resources for global green transitions, particularly for Europe’s efforts to reduce reliance on China. The report advocates for mutually beneficial partnerships based on local content obligations, industrialization goals, and value addition within African economies.

Some key points Rare Earth Exchanges validates. First, Africa’s increasing bargaining power. The report accurately highlights Africa’s growing leverage in global mineral geopolitics, fueled by surging CRM demand and local content policies. These policies, which prioritize domestic ownership, employment, and beneficiation, are reshaping traditional extractive models.

Second is the European lag in CRM engagement. The EU’s slow adaptation to Africa’s regulatory landscape contrasts with more aggressive investments by China and Gulf nations. The brief’s call for Europe to to enhance its engagement through grants, skills training, and technology transfer is a realistic pathway to address this gap.

Third is the potential for regional integration. The report’s emphasis on regionalizing CRM policies (e.g., Zambia-DRC battery precursor collaboration) aligns with Africa’s aspirations for economic integration under frameworks like the African Continental Free Trade Area (opens in a new tab) (AfCFTA).

What assumptions and biases are possibly at play?

First and foremost, there is optimism about EU cooperation. The report assumes that European actors will readily adapt to African demands for industrialization and value addition. However, Europe’s historical focus on extraction and infrastructure, rather than local beneficiation, suggests that deeper cooperation will require significant shifts in policy and practice.

Second is China as the benchmark. While the brief critiques Europe for lagging behind China, it may overstate China’s success in fostering Africanindustrialization. Chinese investments often prioritize resource extraction, with only selective compliance to local content obligations, which may not offer an ideal comparison.

Third is the potential underplaying of African challenges. The paper acknowledges infrastructure and skills gaps but downplays how these challenges might hinder immediate compliance with local content rules. Realizing such policies often requires long-term investments and institutional reforms.

Finally, the author exhibits a bias toward a cooperative narrative. The report positions Europe’s engagement in Africa as inherently beneficial, assuming European investments will align seamlessly with African development goals. While this aligns with diplomatic rhetoric, the historical extractive relationships and competing priorities within Africa suggest potential friction.

Conclusion

Acheampong presents an important case for Europe to embrace Africa’s evolving regulatory landscape as a strategic opportunity. The brief is well-reasoned in advocating regional integration, skills development, and innovation as cornerstones of this partnership. However, its optimistic tone assumes a swift alignment of interests, potentially underestimating the complexity of balancing local content rules, geopolitical competition, and Africa’s internal constraints. For Europe to achieve meaningful engagement, it must move beyond rhetoric to actionable, long-term investments in Africa’s CRM value chains.

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