The European Union and South Africa have signed an agreement for cooperation in mining and processing minerals and metals. EU Commission President Ursula von der Leyen highlighted the need for these raw materials to advance the energy transition. The deal seeks to reduce Europe's reliance on China.
The EU and South Africa agreed on a deal for future cooperation in the extraction and processing of minerals and metals from the resource-rich African country. This occurred shortly before the start of the G20 summit in Johannesburg, where EU Commission President Ursula von der Leyen met with South Africa's President Cyril Ramaphosa.
'We need these raw materials to drive the energy transition both here and in Europe,' von der Leyen said at a press conference in Johannesburg.
According to the US Geological Survey (USGS), South Africa holds more than three-quarters of the world's reserves of platinum group metals and rare earths. The country also has the world's largest manganese deposits and is among the leading producers of chromium.
Ramaphosa described the agreement as 'unprecedented.' It promises economic added value for South Africa, as processing is expected to take place in the country. 'In an increasingly unstable geopolitical environment, Europe aims to secure its supply chains for critical raw materials and diversify its sources,' stated EU Industry Commissioner Stéphane Séjourné.
China dominates the global market for key raw materials like rare earths, which are crucial for many sectors. Amid the US-China trade dispute, where China uses its market power as leverage, the issue has gained further importance. The 27 EU member states are thus seeking new raw materials trade partners.