South Africa proposes US partnership for critical mineral processing

South African Trade, Industry and Competition Minister Parks Tau has proposed a new framework for cooperation with the United States regarding critical minerals. Speaking at a business roundtable during the United Nations General Assembly in New York, Tau expressed a desire to move beyond the mere export of raw materials toward a model centered on local refining, processing, and manufacturing.

The proposal includes the creation of a Critical Minerals Investment Platform. This platform would aim to connect South African development finance institutions with American financiers and companies, such as the U.S. International Development Finance Corporation and the Exim Bank, to identify specific projects, secure funding, and establish long-term purchase agreements.

South Africa aims to leverage its reserves of platinum group metals, manganese, chromium, vanadium, rare earths, titanium, and zirconium to bolster its industrial sector. Tau emphasized that successful cooperation would require technology transfer, skills development, and significant investment in domestic energy, rail, port, and water infrastructure. While the platform and specific project lists are currently proposals, the initiative seeks to transform South Africa into a hub for battery materials and hydrogen economy components.