Despite strained bilateral relations, the United States and South Africa this week held their highest-level meeting so far this year to discuss potential resource deals in critical minerals, Financial Times informed on Friday, quoting attendees of the meeting in Johannesburg.
The two countries have had strained relations since US President Donald Trump took office for his second term last year and accused South Africa of “white genocide”.
However, the Chinese hold on the global critical minerals market has prompted the US to seek opportunities for resource deals in South Africa, which produces minerals including manganese, vanadium, platinum and chromium.
Talks were still in the very early stages, but it appears the US is keen to sign agreements across Africa to break China's dominance in critical minerals and rare earth elements.
Since China banned exports of rare earth elements as early as 2025, Western countries have raced to build mine-to-magnet supply chains to reduce dependence on Chinese supplies in key military and automotive industries.
According to the International Energy Agency (IEA), China accounts for 59% of rare earth mining, 91% of refining and 94% of magnet manufacturing. Estimate.
The US has responded by taking stakes in mineral mining companies, starting the US Strategic Critical Minerals Reserve, known as the Project Vaultand is leading efforts to break it Chinese stronghold on pricing These minerals are important for the defense and auto industries and national security.
Bloomberg Intelligence (BI) said China's market share will decline from 90% in 2024 to 69% by 2030, driven by increasing neodymium-praseodymium (NdPR) supply from countries such as the US and Australia. Research in March.
“We are seeing an increase in rare-earth investments as modern technologies demand more critical materials,” said Jack Baxter, global metals and mining analyst at BI and co-author of the report.
by Charles Kennedy oilprice.com