Africa's Emerging Opportunities in the Rare Earth Magnets Space
The little known useful metal, Neodymium, is now in focus in Africa
Africa is emerging as a critical frontier in the race to secure neodymium, a cornerstone of rare earth magnets powering electric vehicles (EVs), wind turbines, and advanced electronics. With global demand for these magnets projected to grow 50-60% by 2040, driven by the U.S. and Europe’s hunger for green and defence technologies, the continent’s untapped deposits offer a strategic counterweight to China’s near-monopoly on rare earths.
China dominates the market, controlling 61% of global rare earth extraction and 92% of refining, including nearly 100% of heavy rare earths like dysprosium, essential for high-performance magnets. Beijing’s export restrictions, tightened in April 2025, have disrupted supply chains, causing shortages that threaten U.S. automakers and defence contractors. This has intensified the search for alternatives, with Africa’s neodymium-rich deposits drawing investor and geopolitical focus.
South Africa’s Phalaborwa project, led by Rainbow Rare Earths, is a flagship initiative. It aims to extract neodymium and other rare earths from phosphogypsum stacks, offering a low-cost, sustainable approach with production slated for 2027. Madagascar’s Toliara project, acquired by Energy Fuels in 2024, targets monazite sands rich in neodymium and dysprosium, with plans to process them in the U.S. These projects signal Africa’s potential to diversify global supply chains, playing their part in reducing reliance on China.
The U.S., which imports $170 million in rare earths annually, sees Africa as a vital partner. Government-backed initiatives, like exploration of Minerals Security Partnerships with African nations, will foster much-needed investment in African mining to bolster supply security.
Despite the challenges of complex metallurgical extraction and environmental concerns, the few (of many) developments mentioned above offer hope for a more balanced rare earth market, fueling optimism for Africa’s role in powering the world’s clean energy future.