South Africa and European Union Sign Landmark Critical Minerals Partnership, Reaffirm Commitment to Multilateralism
By: Keziah Biya
Pretoria/Brussels – 20 November 2025
South Africa and the European Union have formally signed a strategic partnership on critical minerals and renewable energy value chains, in a move both sides hailed as a cornerstone of “fair, sustainable and rules-based” global trade in the materials essential for the green and digital transitions.
The agreement was signed on the sidelines of the 17th South Africa–EU Summit in Pretoria by South African President Cyril Ramaphosa and European Commission President Ursula von der Leyen, in the presence of Trade and Industry Minister Parks Tau, EU Trade Commissioner Valdis Dombrovskis and Energy Commissioner Kadri Simson.
Key pillars of the pact
The partnership rests on five main work streams:
- Joint development of sustainable raw materials value chains
- Mapping and co-financing of bankable mining, refining and recycling projects in South Africa (especially manganese, platinum-group metals, vanadium, chromium and graphite).
- Commitment to ESG (environmental, social and governance) standards aligned with the EU’s forthcoming Critical Raw Materials Act and South Africa’s own Just Energy Transition framework.
- Integration into downstream industries
- Support for local beneficiation (refining and manufacturing) of battery-grade manganese sulphate, vanadium redox flow batteries, fuel-cell catalysts and green steel using South African chromium and manganese.
- Research, innovation and skills
- €150 million initial contribution from the EU’s Global Gateway initiative for geological surveys, R&D centres and vocational training programmes.
- Establishment of a joint South Africa–EU Critical Minerals Development Institute.
- Infrastructure and energy
- Co-financing of grid upgrades and renewable energy projects to power new processing facilities.
- Exploration of green hydrogen partnerships using South Africa’s abundant platinum and renewable resources.
- Trade and investment facilitation
- Streamlined permitting and investment protection measures.
- Commitment to avoid export restrictions on critical minerals destined for the partner (a direct response to recent Indonesian and Chinese export curbs).
Strategic and geopolitical significance
President Ramaphosa described the deal as “a new chapter of equitable partnership” that moves away from the historic pattern of Africa exporting raw materials and importing finished goods.
“This is not charity; it is mutually beneficial industrial cooperation,” he said. “South Africa brings the resources and the workforce; Europe brings capital, technology and market access. Together we reduce risky dependencies on single suppliers
.”President von der Leyen explicitly framed the agreement as a victory for multilateralism at a time of rising protectionism:“In an era where some prefer unilateral restrictions and coercive diplomacy, South Africa and the EU are proving that open, rules-based cooperation remains the best path to secure supply chains and accelerate the green transition.
”The pact is widely seen as Europe’s strongest push yet to diversify away from China, which currently dominates refining of many battery and renewable-energy metals (controlling ~90 % of manganese refining, ~85 % of cobalt and ~65 % of lithium processing capacity globally).
Economic implications
South Africa is the world’s largest producer of manganese (38 % of global supply), platinum (72 %), rhodium (82 %) and chromium (42 %), and holds significant vanadium and graphite deposits. The country aims to capture a larger share of the estimated $400 billion annual battery value chain by 2035.Analysts estimate the partnership could unlock up to €12 billion in new investments in South Africa’s mining and processing sectors over the next decade, creating tens of thousands of direct and indirect jobs in Mpumalanga, Limpopo and the Northern Cape.
Reactions
- Business Unity South Africa (BUSA) welcomed the deal, saying it “finally gives policy certainty to investors who have been waiting for a clear green-industrialization road map”.
- The Congress of South African Trade Unions (COSATU) cautiously supported the pact but demanded “iron-clad guarantees” on local procurement and skills transfer.
- Environmental groups such as groundwork and the Centre for Environmental Rights called for strict oversight to prevent the expansion of mining in ecologically sensitive areas.
The agreement will be overseen by a high-level South Africa–EU Critical Minerals Council that meets annually, with the first technical working groups scheduled to convene in Brussels in February 2026.
With this partnership, South Africa consolidates its position as a pivotal swing supplier in the global critical-minerals chessboard, while the European Union takes its most concrete step yet toward “de-risking” its green industrial strategy through trusted, values-aligned partners.
