Global rare earths demand is forecast to triple by 2035, reaching 150,000 tonnes from 91,000 tonnes in 2024. As a result, Africa is increasingly coming into focus with producers and consumers seeking new sources to meet demand.
Africa is forecast to account for 9% of the global output by 2029 and as such, the continent is expediting exploration and drilling activities.
Energy Capital & Power reports as the adoption of electric vehicles, renewable energy systems and advanced manufacturing accelerates demand, African countries are scaling up exploration efforts.
One of those companies in Pensana (LSE:PRE), which has begun preparing for a 7,000m drilling program at the Longonjo Mine in Angola – the nation’s first rare earths project.
The program is designed to support an early 2027 mining and stockpiling schedule, with initial production targeting 20,000 tonnes per year. The mine also has an option to increase output to 40,000 tonnes per year in phase two.
At full-scale, Longonjo is forecast to supply 5% of the world’s magnetic rare earths.
African exploration
In Botswana, Tsodilo Resources (TSX-V:TSD) is planning a 15,000m drill program this year at the Gcwhibaba Project for resource definition and Kavango Resources (LSE:KAV) is conducting additional drilling at the Ditau Project as it seeks partners for expansion.
As previously reported, Rainbow Rare Earths (LSE:RBW) recently produced a 2kg mixed rare earth hydroxide at the Phalaborwa Pilot Plant in South Africa.
By delivering these separated products, Rainbow intends to capture more of the value chain by going further downstream than many rare earths projects.
Rainbow Rare Earths is targeting to complete a Feasibility Study for Phalaborwa at the end of 2026.
In Namibia, ReExploration (TSX-V:REE) is continuing exploration activities at the Eureka and Lofdal projects, following several private placements raised in 2025.
Altona Rare Earths (LSE:REE) also recently secured approval from the US Government for its Monte Muambe Rare Earths Project in Mozambique.
The approval and support will allow the company to define the technical and financial pathway for the project’s development, targeting the production of rare earths vital for high-strength permanent magnets, defence applications, and energy transition technologies. The support is subject to the execution of a formal grant agreement, which is in preparation.
Altona is conducting drilling at Monte Muambe, which has already defined a maiden resource of 13.6 million tonnes @ 2.42% total rare earth oxide.
African investments
Energy Capital & Power says that while the majority of Africa’s rare earths assets remain in exploration or development, global investor appetite for the continent’s resource potential continues to strengthen.
In October 2025, South Africa’s Steenkampskraal Monazite Mine secured its first tranche of funding from the Industrial Development Corporation, supporting the development of the project’s metallurgical phase and underpinning its production expansion plans.
Hosting one of the world’s ‘highest grade’ rare earth deposits, with an average grade of 14.5% total rare earth oxides, Steenkampskraal reinforces South Africa’s emerging role in the global rare earth supply chain.
Over in Malawi, the Songwe Hill Rare Earth Project secured US$4.6 million in financing from the US International Development Finance Corporation in September 2025 to advance front-end engineering and design studies.
According to Energy Capital & Power, Africa is forecast to attract up to US$50 billion in investment for critical minerals development between 2024 and 2040.
This news comes ahead of African Mining Week (AMW), which takes place from 14-16 October 2026. AMW is emerging as a critical platform to convert geological potential into investable projects, partnerships, and value chain development across the continent.
The continent currently holds 30% of the world’s critical mineral reserves, positioning Africa at the centre of the global energy transition and industrial supply chain realignment. As reported, Sub-Saharan Africa alone is estimated to produce US$2 trillion ($2.83 trillion) of metals required for the energy transition by 2050.
Write to Aaliyah Rogan at Mining.com.au
Images: Unsplash, Rainbow Rare Earths & Altona Rare Earths
