Africa Seeks to Rewrite Extractive Bargain with Critical Minerals Refining Push

At the G7 summit in Evian-les-Bains, France, on June 17, Kenyan President William Ruto revealed that his country was nearing a critical minerals agreement with the United States. Far more significant was Kenya’s insistence that its rare earths, lithium, graphite, copper, nickel and niobium be refined and processed domestically rather than exported as raw materials. This was not simply another minerals deal; it was a signal that African governments are trying to rewrite the extractive bargain. That demand, long voiced but rarely enforced, is beginning to reshape African resource governance. Namibia has prohibited exports of unprocessed lithium, cobalt, manganese, graphite and rare earths. Mali is constructing a 200-tonne-a-year gold refinery while requiring more local refining. Ghana will begin buying 30 percent of large-scale gold output from July 2026 to strengthen local refining and reserves. Across the continent, governments are increasingly requiring natural resources to create industries at home before generating profits abroad. The turn is not confined to critical minerals; it reflects a wider push to keep more value from natural resources at home. Kenya’s move comes as the global race for critical minerals intensifies and Africa assumes greater strategic importance. Lithium consumption rose by almost 30 percent in 2024 as countries accelerated investment in electric vehicles, battery storage, renewable energy systems and advanced manufacturing. The International Energy Agency (IEA) projects lithium use will increase fivefold by 2040, with graphite and nickel requirements roughly doubling. This commodity boom differs in one crucial respect: The supply of critical minerals cannot expand rapidly. New mines often take well more than a decade to move from discovery through permits and development to first production, even as global demand continues to accelerate. The IEA estimates that, under its Stated Policies Scenario, announced mining projects will leave lithium supply 40 percent short of projected demand by 2035. Countries seeking secure supplies therefore have greater incentives to invest where the minerals already exist, giving African governments more room to negotiate local value addition, technology transfer and industrial investment. For generations, the continent’s economic role has been brutally simple: Dig, ship and buy back the finished product. The transition minerals boom offers a rare opportunity to reverse that relationship. But this will require reliable power, transport, finance and skills, not export bans alone. Mining is only the first step. The greatest wealth is created further along the production chain, when minerals are refined, processed and assembled into products that command far higher prices than the ore that left the ground. United Nations data illustrates how rapidly export value rises along the lithium-ion supply chain. In 2022, global exports of lithium ore and brine were worth about $20bn. Battery materials generated $51bn, cell components and battery packs $106bn, and electric vehicles $135bn. Africa’s challenge is to move further along that chain. Every additional stage completed on the continent captures more income, creates more skilled jobs and embeds more technology before a single battery reaches the market. Refining minerals is not an end in itself. It is the first step towards building the productive capabilities that distinguish manufacturing economies from extractive ones. Around every refinery cluster, engineering companies, chemical producers, equipment manufacturers, laboratories and specialist suppliers can emerge. Taiwan’s experience offers a broader lesson: With sustained policy, skills and supplier networks, industrial capabilities built in one generation can create higher-value industries in the next. Africa’s growing confidence reflects a profound shift in supply chain politics. In a market this concentrated, countries that combine mineral deposits with downstream ambition can negotiate stronger terms. What has changed is not simply demand, but dependency: China is the dominant refiner for 19 of the 20 strategic minerals tracked by the IEA. For copper, lithium, nickel, cobalt, graphite and rare earths, the top three refining countries control 86 percent of processed output. The continent should demand beneficiation, meaning the processing of raw materials into higher-value products before export, alongside technology transfer and industrial investment before those resources enter global supply chains. History offers a cautionary lesson. Gold, diamonds, copper and oil generated billions of dollars in exports across the continent, yet most resource-rich economies remained dependent on exporting raw commodities rather than manufacturing higher-value products. The colonial economy was built around those outward flows. In what is now Zambia, copper from Nkana, Mufulira and Nchanga moved through Ndola and across the rail network to Beira, the Mozambican port that linked the Copperbelt to overseas smelters and factories. Across the Gold Coast, in present-day Ghana, cocoa from Kumasi travelled by rail to Sekondi and later Takoradi before entering Britain’s chocolate industry. Today’s export restrictions, refining mandates and beneficiation policies seek to disrupt that flow. The prize is to capture the industries built around those minerals before they take root elsewhere. The real wealth in Africa’s transition minerals boom will not be measured by what leaves its ports, but by what never has to. Every tonne of lithium refined, every battery precursor produced and every stage of manufacturing completed before export shifts more income, technology, investment and skilled employment onto the continent. Research by Publish What You Pay suggests that expanding higher-value mineral processing across Africa could generate an additional $32bn in annual exports, add up to $24bn to the continent’s gross domestic product and create about 2.3 million jobs. More importantly, it would leave behind industries, technologies and expertise that outlast the minerals themselves. Nigeria’s Dangote refinery provides Africa’s clearest demonstration of what beneficiation can achieve. Located in the Lekki Free Zone outside Lagos and built at a cost of about $20bn, the 650,000-barrel-a-day facility is Africa’s largest single-train refinery. Since beginning production in early 2024, the refinery has helped transform Nigeria’s energy sector. For decades, the country imported much of its refined fuel, spending billions of dollars in foreign exchange. The refinery now supplies much of the domestic market while exporting petrol, diesel and jet fuel to Ghana, Cameroon, Togo, Burkina Faso and Ivory Coast. Between February and March 2026, Nigeria’s clean petroleum exports more than doubled from about 100,000 barrels a day to 214,000 barrels, while helping anchor a new industrial ecosystem of marine infrastructure, storage terminals, petrochemical plants and fertiliser production. Indonesia exemplifies the same principle. After banning exports of unprocessed nickel ore on January 1, 2020, Indonesia became a leading producer and exporter of processed nickel products. The country targeted $21.3bn in foreign investment in mining and processing projects, while the value of its nickel product exports rose from less than $1bn in 2015 to nearly $20bn in 2022. New smelters, refineries, battery-material plants and electric vehicle manufacturing have expanded rapidly, though the boom has also brought environmental and labour concerns. Africa’s transition minerals require the same strategic intent. If Zambia refines copper, Zimbabwe processes lithium, the Democratic Republic of the Congo produces battery precursors, and South Africa manufactures battery components, engineering firms will expand, chemical industries will grow, and skilled workers will find opportunities at home instead of abroad. Railways will carry higher-value products instead of raw ore, tax revenues will become more stable, and manufacturing will increasingly replace extraction as the main driver of long-term economic growth. No African country needs to manufacture every component of an electric vehicle or every battery cell. Copper, cobalt, lithium, graphite and manganese are spread across different economies, making regional integration an economic necessity rather than a political aspiration. Shared power systems, transport corridors, research institutions, standards and integrated markets will determine whether Africa exports minerals or manufactures products. That makes the African Continental Free Trade Area indispensable. Properly implemented, it can turn isolated mineral deposits into regional manufacturing systems by lowering trade barriers and allowing countries to specialise. Together, African economies can develop an integrated industrial base that none could achieve alone. Africa has lived through too many extractive booms that enriched others first. Copper built industries across Europe and North America while Zambia remained dependent on raw exports. Cocoa supplied Britain’s chocolate manufacturers while Ghana captured only a fraction of the value added. The global energy transition gives Africa its best opportunity in generations to rewrite that history. Africa can finally mine, beneficiate and industrialise on its own terms.