The European Union and South Africa have agreed to an agreement on future cooperation in the extraction and refining of minerals and metals from the resource-rich African country. “We need these raw materials to advance the energy transition both here and in Europe,” EU Commission President Ursula von der Leyen said at a news conference in Johannesburg. He arrived shortly before the start of the G20 summit for talks with South African President Cyril Ramaphosa.
According to the United States Geological Survey (USGS), South Africa holds more than three-quarters of the world’s platinum and rare earth metal reserves. The country also has the world’s largest manganese deposits and is one of the leading producers of chromium.
Ramaphosa described the agreement as “unprecedented”. This provides added value for South Africa as processing is expected to take place in the country. “In an increasingly unstable geopolitical environment, Europe is seeking to secure supply chains of critical raw materials and diversify its sources of supply,” said EU Industry Commissioner Stéphane Séjourné.
China dominates the global market for critical raw materials such as rare earths, which are critical to many sectors. In the wake of the trade dispute between the United States and China, in which China openly used its market power as a tool for pressure, this topic has become increasingly important. Therefore, the 27 EU member states are trying to find new raw material trading partners.
