SA strikes €350m deal with EU to cash in on rare minerals

Johannesburg – The European Union and South Africa said on Thursday they have agreed to boost exploration, extraction and refining of minerals and metals in the resource-rich African nation to secure supplies for the green transition.

A deal laying the foundation for future cooperation was signed in Johannesburg as EU chief Ursula von der Leyen and South Africa’s President Cyril Ramaphosa met ahead of a G20 summit.

Brussels has been scrambling to secure critical minerals and rare earth elements, which are essential for electronic goods such as batteries, and needed for the bloc’s green transition.

“We need these inputs to power the clean energy transition, both here and in Europe,” von der Leyen told a press conference.

The agreement comes as Brussels and Pretoria seek to bolster relations, both buffeted by US tariffs.

🇿🇦His Excellency President @CyrilRamaphosa, with @eucopresident António Costa and President Ursula Gertrud @vonderLeyen participate in the South Africa–European Summit at the Sandton Convention Centre, Johannesburg.

The discussions focused on advancing cooperation across a wide… pic.twitter.com/2Q0rXQ7EjB

— The Presidency 🇿🇦 (@PresidencyZA) November 20, 2025

US President Donald Trump has accused South Africa of persecuting white farmers, a narrative denied by Pretoria.

The agreement “aims to identify and jointly develop industrial projects of common interest across the exploration, extraction, refining and recycling of minerals and metals,” according to an EU statement.

Ramaphosa described the deal as “unprecedented”, saying it would create value in South Africa, with processing expected to take place in the country.

WATCH | European Commission President Ursula von der Leyen says South Africa is a highly valuable partner for the European Union. She adds that they have signed three major projects with SA including the €350 million in infrastructure in transport and energy, among others. pic.twitter.com/QXS9CvwGFH

— SABC News (@SABCNews) November 20, 2025

South Africa holds more than three-quarters of the world’s reserves of platinum group rare earth metals, the largest reserves of manganese, and is among the top producers of chromium, according to the US Geological Survey.

“In an increasingly unstable geopolitical environment, Europe aims to secure its supply chain of critical raw materials and diversify our sources,” said Stephane Sejourne, the EU’s industry chief.

The 27-nation bloc is seeking to end its dependence on rare earths – a subset of critical raw materials – from China, after Beijing announced further curbs on the export of minerals vital to many key sectors.