South Africa and the EU should collaborate to build strategic interdependence in critical minerals

The research paper proposes a strategic partnership between South Africa and the EU in the critical minerals sector as an alternative to the unpredictable diplomacy of the US administration. It highlights the complementary nature of their interests, noting that South Africa is a top producer of platinum group metals, manganese, and chromite, while the EU seeks to diversify its supply chains via the Critical Raw Materials Act (CRMA). The author identifies key challenges to implementation, including tensions over local value addition, private sector engagement, and the transparency of mineral agreements. The paper recommends that South Africa address structural infrastructure issues and that the EU provide targeted support for in-country beneficiation and ESG implementation to move from negotiation to tangible projects.

• The EU is South Africa's largest trading partner, with 2024 data showing the EU accounted for 19% of exports ($21 billion) and 23.5% of imports ($25 billion), and provided over 50% of foreign direct investment.
• South Africa is a critical supplier for the EU, providing 92% of its iridium, 80% of its rhodium, 71% of its platinum, and 93% of its ruthenium imports.
• The EU's Critical Raw Materials Act (CRMA), adopted in May 2024, sets 2030 targets for annual consumption: 10% from local extraction, 25% from recycling, 40% from local processing, and a limit of 65% imports from any single country.
• The EU has identified 13 strategic projects outside its region as of June 2025, including the Zandkopsdrift project in South Africa, which aims to produce 17,000 tonnes of rare earth elements by 2027.
• A significant tension exists between South Africa's goal of in-country value addition and the EU's objective to onshore mineral supply chains for its own strategic autonomy.
• There is a lack of transparency regarding critical mineral agreements; roadmaps for MoUs between the EU and sub-Saharan African countries are often unavailable to the public, leading some to call them 'deals without details'.
• To successfully leverage these partnerships, South Africa must resolve structural impediments including load-shedding, inefficient rail and port infrastructure, and a lack of policy certainty.

APA

South African Institute of International Affairs (2025). South Africa and the EU should collaborate to build strategic interdependence in critical minerals. https://saiia.org.za/research/south-africa-and-the-eu-should-collaborate-to-build-strategic-interdependence-in-critical-minerals/

Chicago

South African Institute of International Affairs. South Africa and the EU should collaborate to build strategic interdependence in critical minerals. 2025. https://saiia.org.za/research/south-africa-and-the-eu-should-collaborate-to-build-strategic-interdependence-in-critical-minerals/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=South Africa and the EU should collaborate to build strategic interdependence in critical minerals |date=30 June 2025 |url=https://saiia.org.za/research/south-africa-and-the-eu-should-collaborate-to-build-strategic-interdependence-in-critical-minerals/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2025south, author = {{South African Institute of International Affairs}}, title = {{South Africa and the EU should collaborate to build strategic interdependence in critical minerals}}, institution = {South African Institute of International Affairs}, year = {2025}, month = jun, url = {https://saiia.org.za/research/south-africa-and-the-eu-should-collaborate-to-build-strategic-interdependence-in-critical-minerals/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }