(Ecofin Agency) - • EU adds four African projects to its strategic list for critical mineral supply
• Projects include rare earths in Malawi and South Africa, graphite in Madagascar, and cobalt refining in Zambia
• Local processing rules and global competition push EU to rethink its funding and trade policies

The European Union is stepping up efforts to secure critical minerals from Africa, but experts say it needs to go further if it wants to build lasting partnerships on the continent. Last week, the European Commission added 13 new projects to its strategic list under the Critical Raw Materials Act (CRMA), which aims to reduce Europe’s reliance on a small group of suppliers. Out of the 60 projects now on the list, four are based in Africa, signaling growing interest but also highlighting the challenges ahead.

Two of the four African projects focus on rare earth elements, which are key for technologies like electric vehicles and wind turbines. One is the Songwe Hill mine in Malawi, led by Mkango Resources, which aims to produce 8,425 tons of rare earth carbonate per year for 18 years. The other is the Zandkopsdrift project in South Africa, owned by Frontier Rare Earths, which targets 17,000 tons annually, including 4,000 tons of magnet-grade rare earths.

In Madagascar, Evion Group is working on the Maniry graphite project. It plans to produce between 35,000 and 45,000 tons during the first three years, then raise output to 50,000–60,000 tons annually.

The fourth project is a cobalt refinery under development in Zambia. Kobaloni Energy intends to produce 6,000 tons of cobalt sulfate per year, a key ingredient in electric batteries, with the option to double capacity over time.

Being on the CRMA strategic list means these projects can apply for funding from a special EU group that includes the European Investment Bank, the European Bank for Reconstruction and Development, national development banks, and private investors.

According to the European Commission, all 60 projects together would require a total investment of €5.5 billion ($6.3 billion). In return for financial support, the EU expects firms to commit some or all of their production to European markets.

Africa holds around 30% of the world’s reserves of critical minerals. For the EU, this offers a chance to diversify its suppliers and become less dependent on countries like China. But Brussels is not the only one eyeing Africa, China, the United States, and Gulf countries are also deepening ties.

At the same time, African countries are raising their expectations. Local governments are pushing for more value to be added on their soil, rather than exporting raw materials. Countries like the Democratic Republic of Congo (cobalt and copper), Zimbabwe (lithium), and Namibia (lithium and rare earths) are enforcing rules on local content and banning exports of unprocessed minerals. They want investors to help build processing plants and refineries.

In a December 2024 report, economist Theophilus Acheampong from the European Council on Foreign Relations (ECFR) stressed that local content rules are "non-negotiable" if Europe wants access to Africa’s critical resources.

A second ECFR report, published in May 2025, calls on Brussels to rethink its approach. Titled Too Clean to Compete: Why Strict Standards Keep Europeans Out of African Minerals, it argues that the EU’s green finance rules need to be more flexible. Right now, mining is excluded from the EU’s sustainable finance framework, which limits funding for extraction, even though Europe’s energy transition depends on these materials.

The report also criticizes the Carbon Border Adjustment Mechanism (CBAM), which puts a price on carbon-intensive imports. While meant to protect European industries, it may hurt Africa’s efforts to boost local mineral processing. This, the report says, could scare off both African and European investors.

If the EU wants to be more than a minor player in Africa’s mining future, it must offer more funding, adapt its rules, and listen more carefully to what African partners need.