Issue Brief

Critical Minerals – A Key G20 Issue for South Africa

As the global energy transition gathers pace, critical minerals have become a central focus of international economic diplomacy. For resource-rich countries like South Africa, this evolving landscape presents both significant opportunities and pressing challenges. In 2025, as South Africa assumes the G20 Presidency, it has a unique chance to shape global conversations on critical minerals—an issue that is no longer limited to extraction alone, but intersects with climate action, energy security, global supply chains, geopolitics, and sustainable development.

For South Africa, leveraging the G20 platform to engage with global partners on critical minerals could unlock much-needed investment, technology transfer, and the development of equitable value chains that align both with national priorities and international needs.

As the world works toward net zero emissions, the demand for minerals vital to clean energy technologies is set to soar. Minerals such as lithium, nickel, cobalt, graphite, copper, aluminium, and rare earth elements are essential for the deployment of solar panels, wind turbines, electric vehicles, and energy storage systems. According to the International Energy Agency (IEA), under its Stated Policies Scenario, demand for these minerals could more than double. In the more ambitious Net Zero Emissions by 2050 Scenario, which aims to cap global warming at 1.5°C, demand could grow nearly fourfold by 2030 compared to today's levels.

The mining industry represents a powerful economic engine, capable of driving large-scale financial inflows into national economies through capital-intensive projects. In the IEA's Net Zero Emissions (NZE) Scenario, meeting the projected global demand for critical minerals between 2022 and 2030 will necessitate an estimated USD 360 billion to USD 450 billion in mining-related investments. Importantly, a substantial share of this capital is expected to be channelled into resource-rich regions, particularly Africa, Central and South America, and the Asia-Pacific, underscoring the strategic relevance of these areas in the global clean energy transition.

Beyond extraction, the processing and refining stages—essential for turning raw minerals into usable industrial inputs—will also require an additional USD 90 billion to USD 210 billion over the same timeframe to align with projected clean energy targets.

To maximise the socio-economic benefits of these investments, host countries must implement transparent, efficient regulatory frameworks that promote equitable distribution of resource revenues. Well-structured systems for taxation, royalties, and community benefit-sharing can transform mineral wealth into sustainable public revenue streams, financing vital sectors such as infrastructure, healthcare, and education.

Moreover, investing not just in extraction but in upstream and midstream value chain segments can enable greater domestic retention of economic value. By developing local processing capabilities, infrastructure, and skilled labour, resource-rich nations, like many in Africa, can avoid the pitfalls of raw material export dependence and instead foster inclusive growth, industrialisation, and long-term development. This strategic approach ensures that the energy transition delivers not just global environmental benefits, but tangible improvements in livelihoods and resilience for producing countries and their communities.

The 21st century is being defined by a global shift towards green industrialisation, decarbonisation, and digital transformation. At the core of this shift lies the strategic importance of critical minerals like manganese, vanadium, platinum group metals, rare earth elements, and lithium—all abundantly available in South Africa and across the African continent. This resource endowment positions South Africa as a key player in global efforts to develop resilient and sustainable value chains for technologies of the future, including electric vehicles, battery storage, renewable energy, aerospace, defence, and green hydrogen.

South Africa's Resource Endowment

South Africa is endowed with significant reserves of critical minerals, particularly platinum group metals (PGMs), manganese, vanadium, and rare earth elements. It holds over 90% of the world's known reserves of platinum, a vital element for fuel cells and catalytic converters. The country is also among the top producers of manganese, which is essential for steel production and battery technology.

This mineral wealth positions South Africa as a potential cornerstone of global energy transition supply chains. However, historically, South Africa has largely exported raw or semi-processed minerals. The value addition, technology development, and job creation associated with processing and manufacturing often occur elsewhere. The current global focus on critical minerals provides South Africa an opportunity to shift this dynamic, advocating for beneficiation and local value chains.

Historically, minerals have driven economic modernisation, industrial growth, and technological progress. Today, society depends on a new class of 'critical minerals' that are indispensable for a range of modern applications, including:

1. Microelectronics
2. Clean energy generation and storage
3. Digital infrastructure
4. E-mobility
5. Medical technologies
6. Advanced manufacturing

The expanding role of critical minerals in the clean energy transition offers South Africa a strategic opportunity to generate socio-economic benefits. These include foreign investment, tax revenues, job creation, and the growth of ancillary industries and infrastructure, particularly in underdeveloped regions.

By advocating for responsible, transparent, and inclusive mineral value chains during its G20 Presidency, South Africa can advance both global sustainability goals and national development objectives, ensuring that the benefits of the energy transition are shared broadly and equitably.

G20 and the Politics of Critical Minerals

The G20, which brings together 19 of the world's largest economies along with the European Union, has placed growing emphasis on critical minerals as part of wider deliberations on energy security, climate goals, and supply chain resilience. In recent summits, G20 members have stressed the need for collaborative frameworks that guarantee stable and sustainable access to mineral resources, while upholding strong environmental, social, and governance (ESG) standards.

Yet, underlying these discussions is a persistent imbalance. Mineral-consuming nations often focus on securing steady supplies, while many producer countries, which lie in the global south, seek fairer economic returns, technology transfers, and pathways to broader industrial development. This divergence underscores the importance of reshaping global mineral partnerships.

As host of the G20 in 2025, South Africa is uniquely positioned to bring African priorities to the forefront. It can champion a more equitable model of resource cooperation, one that moves beyond raw material extraction to include value addition, such as local processing, skills development, and investment in infrastructure. By leveraging the G20 platform, South Africa can advocate for inclusive mineral value chains that serve both global energy needs and domestic economic aspirations, ensuring that resource wealth translates into long-term development for the continent.

Strategic Priorities for South Africa at G20

• Geoscience and Exploration
• Value Addition and Localisation
• Research, Development and Innovation
• Skills Development
• Infrastructure and Energy Security to support local value addition
• Fiscal Instruments
• Harmonisation of the Regulatory Regimes
• Circular Economy and ESG
• Bolstering Regional Integration

The African Continental Perspective

South Africa's G20 presidency is not just a national opportunity, but a continental one. Many African nations possess vast critical mineral reserves. The Democratic Republic of Congo, for instance, supplies over 70% of the world's cobalt, and Mozambique is a key source of graphite. Yet the continent captures a small fraction of the value from these resources.

South Africa can position itself as a voice for African interests, advocating for fairer global value chains. The African Continental Free Trade Area (AfCFTA) could also be promoted as a vehicle for intra-African mineral trade and cooperation, reducing dependency on external markets.

Conclusion: A Strategic Moment

Critical minerals have become the backbone of the 21st-century green economy, and South Africa is at the center of this tectonic shift. Hosting the G20 gives it a unique chance to lead on this crucial agenda, ensuring that critical mineral development is sustainable, equitable, and transformative.

The objective of South Africa's Critical Minerals and Metals Strategy is to harness the country's mineral wealth to drive sustainable growth, innovation, and global competitiveness. By prioritising exploration, local beneficiation, fostering research and development, and addressing critical infrastructure and policy challenges, the strategy lays a foundation for South Africa to transition from a supplier of raw materials to a leader in the global critical minerals value chains. Successful implementation of this strategy will require robust collaboration between the government, private sector, academia, and civil society. Through coordinated efforts, South Africa can unlock the full potential of its critical minerals, ensuring inclusive and sustainable development while contributing to global efforts toward a green economy and technological advancement. As the demand for critical minerals continues to grow exponentially in the coming decades, South Africa is well-placed to seize this opportunity, becoming a beacon of innovation and sustainability in the global mining sector. This strategy is not merely a roadmap but a commitment to securing long-term prosperity for the nation and its people. By acting decisively and strategically, South Africa can transform its mineral endowment into a cornerstone of national and regional economic resilience and leadership.

By championing beneficiation, sustainable mining, and regional cooperation, South Africa can not only advance its national interests but also redefine Africa's role in the global energy transition.