Critical Minerals and Metals Strategy of South Africa

In May 2025, South Africa released a Critical Minerals and Metals Strategy, which seeks to leverage South Africa’s mineral wealth to drive sustainable economic growth, industrialisation and global competitiveness. 
Key aims of the strategy include:

• Transitioning from raw material exports to local beneficiation and advanced manufacturing.
• Supporting energy transition technologies (EVs, batteries, hydrogen, renewables).
• Creating jobs, fostering innovation, and building skills.
• Ensuring environmental sustainability, social inclusion, and good governance in mining and processing.
•  Strengthening cross-border mineral value chains and trade partnerships within Africa.

The strategy identifies 21 critical minerals, grouped by criticality. High-criticality minerals include platinum group metals (PGMs), manganese, iron ore, coal, and chrome. Moderate to high priorities include vanadium, rare earth elements, and gold, while moderate priorities cover lithium, cobalt, nickel, copper, and titanium. These minerals are considered critical because they underpin South Africa’s economic growth, enable global decarbonisation technologies, support strategic sectors like aerospace and defence, and position the country as a regional leader in mineral beneficiation. 

To unlock value, the strategy calls for:

• The strategy calls for exploration by expanding greenfield projects and improving access to geoscience data.
• It promotes local processing and beneficiation by building hubs for battery materials, hydrogen fuel cells, ferrochrome smelting, and titanium components.
• It requires investment in infrastructure to ensure reliable energy, rail, ports, water systems, and digital connectivity.
• It emphasises research and development in areas such as battery precursors, hydrogen technologies, titanium processing, and AI-driven mining.
• It prioritises skills development through training for advanced mining, processing, and technology sectors.
• It encourages regional partnerships to develop cross-border beneficiation hubs and secure supply of minerals not available locally.

The strategy is structured around six main pillars:

• Geoscience Mapping and Exploration will streamline licensing and expand the Junior Exploration Fund.
• Value Addition and Localisation will establish battery hubs, hydrogen economy projects, and revive ferrochrome smelters.
• Research and Skills Development will create R&D hubs, support startups, and align education with industry needs.
• Infrastructure and Energy Security will be strengthened through Operation Vulindlela reforms (a government initiative to fast-track structural economic reforms in key sectors to remove bottlenecks and improve service delivery), green mining infrastructure and water management.
• Financial Instruments will include tax incentives, royalty adjustments, SEZs and differentiated electricity tariffs.
• Regulatory Harmonisation will introduce a one-stop licencing system and ensure a stable policy environment.

Additional cross-cutting measures include circular economy initiatives such as recycling lithium, REEs, and PGMs, as well as regional integration under AfCFTA. 

The strategy will be implemented through an action matrix defining timelines, responsible entities (DMRE, IDC, DTIC, Presidency), and KPIs. Catalytic projects include battery hubs, hydrogen valley, ferrochrome revival, and beneficiation zones. Public-private partnerships will drive infrastructure, R&D, and manufacturing. Progress will be monitored through regular reviews tied to exploration targets, beneficiation capacity and job creation. Resource diplomacy will secure technology transfer and market access through global partnerships.

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