Lithium and Rare Earth Element Mining in Africa and South America

Lithium and Rare Earth Element Mining in Africa and South America: An Analysis as of April 2025

1. Executive Summary:

This report provides a detailed analysis of the lithium and rare earth element (REE) mining landscape in Africa and South America, focusing on the status of active and planned mining projects as of April 2025. The increasing global demand for these critical minerals, driven by the expansion of electric vehicles, renewable energy technologies, and advanced electronics, has spurred significant mining activities and investments in both regions. Africa is emerging as a crucial player in the lithium supply chain, witnessing a surge in exploration and development, primarily backed by Chinese investments alongside growing Western interest. South America, particularly the "Lithium Triangle" of Argentina, Bolivia, and Chile, holds a more established position in global lithium production, with Argentina poised for substantial growth. In contrast, the REE mining sector in both Africa and South America is in a relatively early stage of development, characterized by a greater number of planned projects compared to active mines, indicating a significant potential for future expansion. Key trends reveal a dynamic landscape where both continents are strategically positioning themselves to meet the escalating global needs for lithium and rare earth elements.

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2. Lithium Mining in Africa:

Africa is increasingly recognized for its significant lithium resources, positioning itself as a vital region in the global lithium supply chain. The surge in demand for lithium, primarily driven by the burgeoning electric vehicle and energy storage sectors, has led to substantial investments in African lithium exploration and mining projects. Notably, Chinese companies have been at the forefront of these investments, aiming to secure feedstock for their domestic refineries in anticipation of future consumption. However, there is a growing interest and involvement from Western firms seeking to diversify their lithium supply sources. While the continent holds immense potential, the majority of African lithium projects remain in the exploration or development stages. Benchmark Minerals Intelligence reported a threefold increase in Africa's mined lithium output in 2024 compared to the previous year, indicating a rapid acceleration in the sector. This growth trajectory suggests that Africa is transitioning from a marginal player to a significant contributor in the global lithium market, a shift that could reshape the industry's dynamics.

2.1. Active Lithium Mines:

2.1.1. Zimbabwe:

Zimbabwe holds some of the largest known lithium deposits in Africa and has become a key focus for lithium mining activities.

Bikita Lithium Mine: Located in the Masvingo Province of southern Zimbabwe , the Bikita Lithium Mine is operated by the Chinese conglomerate Sinomine Resource Group. The mine achieved its designed production capacity following expansion projects in November 2023. These expansions included a gravity separation plant with a projected annual capacity of 300,000 tons of petalite and a flotation plant aiming for 270,000 tons of high-quality spodumene concentrate per year. Despite this significant capacity, recent reports indicate a partial suspension of petalite mining due to prevailing low lithium prices. Furthermore, in March 2025, the company was considering potential production cuts if market conditions did not improve. As of December 2023, the total lithium ore resources at the Bikita Mine were estimated at 113.3517 million tons, containing 1.1679 million tons of lithium metal. While the mine possesses substantial reserves and production capabilities, its actual output in April 2025 may be influenced by the ongoing challenges in the lithium market.
Zulu Lithium and Tantalum Project: Situated in the Fort Rixon area of Matabeleland South Province , the Zulu Lithium and Tantalum Project is operated by the UK-based Premier African Minerals. Production at the Zulu plant has been inconsistent, with operations being halted in July 2024. Premier African Minerals secured funding in January and February 2025 with the aim of restarting operations, including a 3-to-5-day test run of the plant. However, as of late February 2025, the plant remained inactive, and the company reported significant financial liabilities. In March 2025, Premier was actively engaged in raising further capital to support ongoing operations at both the Zulu project and its other assets. A notable aspect of the Zulu project is the Offtake and Prepayment Agreement with Canmax Technologies, which stipulates that if Premier fails to deliver the required product or settle the outstanding prepayment and interest by April 1, 2025, Canmax will be entitled to receive a direct interest in the Zulu project valued at US$100 million. The proposed pilot plant at Zulu has a nameplate throughput of up to 190 tonnes per hour, although initial operations are planned at a more conservative rate of 140 tonnes per hour. Once fully operational, the lithium processing facility is expected to produce 4,000 tonnes of lithium concentrate per month. The project's history of operational challenges and financial constraints suggests that its production status in April 2025 remains uncertain, with the looming April 1 deadline with Canmax potentially having a significant impact on its future.

2.1.2. Ghana:

Ghana is poised to become a significant lithium producer in West Africa, with the Ewoyaa Lithium Project leading the way.

Ewoyaa Lithium Project: Located in Ghana, West Africa, approximately 100 kilometers southwest of Accra , the Ewoyaa Lithium Project is operated by the Australian company Atlantic Lithium. Atlantic Lithium is targeting the commencement of production at Ewoyaa as early as April 2025. The company achieved a major milestone by securing a Mine Operating Permit in October 2024 and is awaiting the ratification of the Mining Lease as of March 2025. Plans are in place for an early production processing plant expected to process around 450,000 tonnes of ore in the initial nine months starting from the second quarter of 2025. The Ewoyaa project boasts a substantial Mineral Resource Estimate of 36.8 million tonnes at 1.24% Li₂O , including Ore Reserves (Probable) of 25.6 million tonnes at 1.22% Li2O. Over its projected 12-year mine life, the project is expected to produce 3.6 million tonnes of spodumene concentrate. With its advanced permitting status and clear production timeline, the Ewoyaa Project is on track to become Ghana's first lithium-producing mine in April 2025, establishing Atlantic Lithium as a key near-term lithium producer in Africa.

2.1.3. Mali:

Mali has recently emerged as a significant lithium producer in Africa with the commencement of operations at two key projects.

Goulamina Lithium Project: Situated in the Bougouni region of southern Mali, approximately 150 kilometers from the capital city of Bamako , the Goulamina Lithium Project is operated as a joint venture between China-based Ganfeng Lithium (holding 65%) and the Malian state (with a 30% stake), with local investors owning the remaining 5%. The Goulamina mine was officially launched in December 2024 , and the first production of spodumene concentrate was announced in February 2025. The project is on schedule to achieve steady-state production by the end of March 2025, with the initial shipment of product to China anticipated shortly thereafter. The Goulamina deposit is estimated to contain 142.3 million tons of lithium oxide with a grade of 1.38% over its 21-year projected lifespan. The mine has a planned annual production capacity of 500,000 tons of spodumene concentrate. With its operational status, Goulamina has positioned Mali as a leading lithium producer in Africa, projected to be the second-largest on the continent in 2025, after Zimbabwe. The significant ownership stake held by a Chinese company underscores China's strategic focus on securing lithium resources in Africa.
Bougouni Lithium Project: Located in southern Mali, approximately 170 kilometers south of Bamako , the Bougouni Lithium Project is a joint venture between Kodal Minerals, a UK-based company holding a 49% stake, and Hainan Mining, a Chinese entity with a 51% controlling stake. Production at the Bougouni project is anticipated to commence during the first quarter of 2025. Similar to the Goulamina project, Kodal Minerals announced the first production of spodumene concentrate in February 2025, marking it as the second lithium mine in Mali to begin operations in recent months. The project is expected to reach steady-state production and complete its first shipment to China by the end of March 2025. The Bougouni mine has an expected annual output of 125,000 tonnes of spodumene concentrate. The commencement of production at Bougouni further solidifies Mali's standing as a key lithium producer in Africa. The joint venture structure, involving both UK and Chinese interests, highlights the multinational nature of investments in the region's burgeoning lithium sector.

2.2. Planned Lithium Mines:

Several lithium mining projects in Africa are currently in the planning and development stages, with production expected in the near future.

Democratic Republic of Congo (DRC):
- Manono Lithium Project: Situated in southeast Congo , the Manono Lithium Project is being developed by China's Zijin Mining Group in collaboration with the Congolese state. Despite ongoing disputes regarding exploration rights , Zijin Mining aims to commence production at the Manono site during the first quarter of 2026. The Manono deposit is described as "sizable" with an average grade of 1.51% lithium oxide. Previous studies have indicated the potential for the mine to produce approximately 700,000 tons of high-grade lithium annually over a 20-year mine life. If developed to its full potential, the Manono project could become the first operating lithium mine in the DRC and one of the largest lithium mines in the world.
- Manono Tailings Project: Located in the Democratic Republic of the Congo , the Manono Tailings Project is being pursued by Canadian-based Tantalex Lithium Resources. Tantalex is aiming to commence production at the tailings project in early 2025, with potential commissioning of the plant by May 2025. The project has a maiden mineral resource estimate of 5.46 million tons of Li₂O with a grade of 0.72% in the measured and indicated categories. Initial production is expected to be around 100,000 tons per year of concentrate. The Manono Tailings Project represents a near-term opportunity for lithium production in the DRC by reprocessing existing mine tailings from previous tin mining operations in the Manono area. This approach could potentially make Tantalex the first formal lithium producer in the DRC.
Nigeria:
- Kebbi State Lithium Project: Located in Kebbi State, Nigeria , this project is a joint venture between Canmax, a China-based company, the Kebbi State Government of Nigeria, and Three Crown Mines Limited, a Nigerian mining company. Canmax signed an investment agreement in early 2025 with plans to establish a modernized plant in Nigeria for lithium ore mining, beneficiation, and tailings processing. While an explicit start date for production is not provided, the company expects to invest over $200 million in the project. Drilling results from Three Crown Mines indicate promising prospects for lithium resource development, although the specific size of the reserves has not been detailed. However, it is reported that the mine contains 2.06257 billion metric tons of porcelain clay (lithium-containing) ore with an average grade of 0.31% Li2O within the open-pit mining boundary. Canmax will hold an 85% stake in the joint venture, with Three Crown Mines holding the remaining 15%. This investment by Canmax marks Nigeria as a potential emerging player in the African lithium sector, aligning with the broader trend of Chinese companies investing in lithium resources across the continent.
Namibia:
- Karibib Lithium Project: Situated in Namibia , the Karibib Lithium Project is owned and operated by Lepidico, an Australian vertically integrated lithium development company. Lepidico is aiming to commence production at the Karibib project in 2025. The total estimated production from the project is 773,000 tons of lithium concentrate over its 14-year mine life. The lithium concentrate produced at Karibib will be transported to a planned chemical plant in the United Arab Emirates, which is expected to have a production capacity of 56,700 tons per year of lithium concentrate. The Karibib project represents another example of Australian-led lithium mining ventures in Africa progressing towards production, with a strategy focused on exporting lithium concentrate for further processing.

2.3. Other Potential Projects:

Exploration activities are also underway in Tanzania, where lithium deposits have been identified. This suggests that the African lithium mining sector has the potential for further growth beyond the countries with currently active or planned mines for April 2025.

3. Lithium Mining in South America:

South America holds a well-established and significant position in global lithium production, particularly within the "Lithium Triangle," which encompasses Argentina, Bolivia, and Chile. The region is renowned for its extensive brine resources found in high-altitude salt flats, making it a prime location for lithium extraction. Major international lithium producers have established operations in this area, contributing substantially to the world's lithium supply. Fastmarkets' research indicates that in 2023, South America accounted for 28% of the global lithium supply, second only to Eastern Asia (China) which held 30%. Argentina, in particular, is poised for major growth in its lithium production over the next few years and is expected to surpass Chile in the short term to become the largest lithium producer in Latin America. The primary method of lithium extraction in South America involves the evaporation of lithium-rich brines in large ponds. However, there is increasing interest and development in Direct Lithium Extraction (DLE) technologies, which offer the potential for faster production times and reduced environmental impact compared to traditional evaporation methods.

3.1. Active Lithium Mines:

3.1.1. Argentina:

Argentina is rapidly expanding its lithium production capacity and is home to several active lithium mines.

Salar de Olaroz: Located in the Jujuy Province of northwest Argentina , the Salar de Olaroz is operated by Sales de Jujuy, a subsidiary of Arcadium Lithium (formed by the merger of Australian Allkem and American Livent). The mine currently has a production capacity of 42,500 tonnes per annum of lithium carbonate following its second expansion. Arcadium Lithium is also planning a Stage 2 expansion of at least 20,000 tonnes per year of lithium carbonate, which is expected to come online in 2025. The ongoing expansions at Salar de Olaroz demonstrate Argentina's commitment to significantly increasing its lithium output in the near future.
Hombre Muerto: Situated in the Catamarca Province of northwest Argentina , the Hombre Muerto salt flat has been home to an active lithium mining operation for 20 years as of 2023. The operating company is Livent Corp, which is now part of Arcadium Lithium. Livent has plans to add 20,000 tonnes to its production within the next couple of years, targeting completion by 2025. As of 2023, Livent had an on-site lithium carbonate capacity of 18,000 metric tons and an off-site lithium chloride capacity of 9,000 product metric tons at Güemes in Salta Province. The first phase of the planned expansion is expected to be complete in 2024, increasing the lithium carbonate capacity to roughly 40,000 metric tons. The long-standing operation at Hombre Muerto, coupled with its planned expansion, solidifies its role as a significant contributor to Argentina's growing lithium production.
Cauchari-Olaroz: Located in the Jujuy Province of northwest Argentina , the Cauchari-Olaroz project is operated by Minera Exar, a joint venture involving Lithium Argentina (44.8%), Ganfeng Lithium (46.7%), and Jujuy Energía y Minería Sociedad del Estado (JEMSE) (8.5%). Construction of the project was completed in June 2023, with an initial production of approximately 6,000 metric tons of lithium carbonate achieved in 2023. Production is expected to reach between 20,000 and 25,000 metric tons in 2024, and further increase to 30,000 - 35,000 tonnes of lithium carbonate in 2025. In early 2024, the lithium carbonate plant was operating at 50% of its capacity, with a smooth ramp-up of production planned throughout the year. The rapid increase in production at Cauchari-Olaroz since its recent commissioning underscores the dynamic growth of Argentina's lithium sector and the effective collaboration between international and local entities.
3Q Salt Lake Lithium Mine: Situated in Argentina , the 3Q Salt Lake Lithium Mine is owned and operated by Zijin Mining, a China-based company with growing interests in the new energy and materials industry. As of early 2025, the first phase of the project, which aims for an annual production of 20,000 metric tons of battery-grade lithium carbonate, is nearing completion. A second phase is also planned, which is expected to add another 30,000 metric tons per year of battery-grade lithium carbonate capacity. Once fully completed and operational, the 3Q Salt Lake project is projected to achieve a total capacity of between 40,000 and 60,000 metric tons of lithium carbonate annually. Zijin Mining's investment in this Argentine lithium project highlights the increasing global reach of Chinese companies in securing critical battery metal resources.

3.1.2. Chile:

Chile has long been a major player in the global lithium market, primarily through its operations in the Salar de Atacama.

Salar de Atacama: Located in the Atacama Desert of Chile , the Salar de Atacama hosts significant lithium mining operations by two of the world's largest lithium producers: Sociedad Química y Minera de Chile (SQM) and Albemarle Corporation. SQM has announced plans to significantly ramp up its lithium production to 230,000 metric tons in 2025, an increase from the estimated 210,000 metric tons produced in 2024. This increase is primarily attributed to expanded capacity in Chile, along with growing contributions from a new conversion plant in China. Albemarle also maintains substantial lithium production operations in the Atacama Desert. The Salar de Atacama remains a critical source of lithium for the global market, and the continued expansion by both SQM and Albemarle underscores Chile's enduring importance in the lithium supply chain.
Silver Peak Mine: While mentioned in the context of the only active lithium mine in the United States , the Silver Peak Mine is located in Nevada and not in South America.

3.2. Planned Lithium Mines:

Argentina and Chile have several planned lithium mining projects that are expected to come online in the coming years, further boosting the region's production capacity.

Argentina:
- Mariana Salt Lake Project: Situated in the Salta Province of Argentina , the Mariana Salt Lake Project is being developed by China's Ganfeng Lithium. Construction of the project was underway as of early 2025. Once operational, the Mariana project is expected to produce 24,000 tons of lithium carbonate per year, significantly contributing to Argentina's overall lithium exports.
- Pozuelos-Pastos Grandes Project: Also located in the Salta Province of Argentina , the Pozuelos-Pastos Grandes Project is another venture by Ganfeng Lithium. Salt field construction for this project was scheduled to commence at the end of 2023, with production anticipated to start in 2026. Notably, a pilot project at the site had already produced lithium by the end of 2023, indicating progress towards the larger production goals.
- Centenario-Ratones: Located in the Salta Province of Argentina , the Centenario-Ratones project is being advanced by the French company Eramet. The project saw its first production planned for November 2024, with a ramp-up of operations expected by mid-2025. The Centenario direct lithium extraction (DLE) plant, inaugurated in August 2024, is designed to produce 24,000 tonnes per year of battery-grade lithium carbonate equivalent at full capacity. Eramet's use of its in-house developed DLE technology at Centenario marks a significant technological advancement in the region and positions the project within the first quartile of the lithium industry cost curve.
- Sal de Oro: Located in Argentina , the Sal de Oro project is owned by South Korea's Posco. Posco commenced construction of a US$830 million lithium hydroxide plant at the site in 2024, with the aim of starting production also in 2024. The plant is expected to have an initial production capacity of 23,000 tonnes per year of lithium hydroxide, sufficient for approximately 600,000 electric vehicle batteries. Posco is also conducting environmental impact studies to potentially increase the production capacity to 100,000 tonnes per year.
- Rincon Lithium Project: Situated in the Salta Province of Argentina , the Rincon Lithium Project is owned by the global mining giant Rio Tinto. Rio Tinto announced a US$2.5 billion investment in December 2024 to significantly expand the Rincon project, representing the company's first commercial-scale lithium operation. The expanded plant will have a total capacity of 60,000 tonnes of battery-grade lithium carbonate per year, which includes the 3,000-tonne starter plant that achieved its first lithium production in November 2024. Construction of the expanded plant is scheduled to begin in mid-2025, subject to permitting, with first production expected in 2028, followed by a three-year ramp-up to full capacity. Rio Tinto is employing a direct extraction technology at Rincon, which it claims can reduce water usage in lithium production by 50%.
- Sal de Vida Project: Located in Argentina , the Sal de Vida Project is part of the portfolio of Arcadium Lithium. While specific timelines for this project were not detailed in the provided snippets, as part of the merged entity's assets, it is likely to be included in their overall expansion plans in Argentina.
- Arizaro Project: Situated in the Salta Province of Argentina , the Arizaro Project is owned by Lithium Chile, a Canadian company. Initial production at the Arizaro project is expected by the end of 2024 or in 2025. A pre-feasibility study indicates that the project has a mineral resource of 4,122,000 tonnes of lithium carbonate equivalent and a planned production capacity of 25,000 tonnes per annum of battery-grade lithium carbonate.
Chile:
- Laguna Verde Project: Located in Chile , the Laguna Verde Project is being developed by UK-based Cleantech Lithium. Cleantech Lithium submitted an application for a CEOL (Special Lithium Operating Contract) in January 2025 and anticipates the award of the CEOL around mid-2025, which would pave the way for production. A pre-feasibility study for the project is expected to be completed by the end of March 2025. The scoping study for Laguna Verde outlined a production rate of 20,000 tonnes per annum of Lithium Carbonate Equivalent (LCE) with an estimated capital expenditure of approximately US$400 million.
Bolivia: While Bolivia possesses the world's largest lithium deposits, the development of its lithium industry has been slow due to significant state control and regulatory complexities. Although deals have been signed with Chinese and Russian companies for the development of pilot lithium extraction plants, large-scale production timelines beyond 2025 remain uncertain. The state-owned company Yacimientos de Litio Bolivianos (YLB) maintains significant control over the lithium production chain, and private investment requires agreements with YLB and approval from the Bolivian Legislative Assembly. While the country opened its first industrial-scale lithium plant in late 2023, it has faced operational challenges. Experts anticipate that even if new contracts are approved in 2025, significant lithium output from these projects is unlikely before 2031.

4. Rare Earth Element (REE) Mining in Africa:

Africa is recognized as a region with growing importance in the global rare earth element (REE) market. The increasing demand for REEs, which are critical components in green technologies such as wind turbines and electric vehicles, as well as in various high-tech applications, is driving this growth. Western nations are particularly interested in developing African REE resources to diversify their supply chains and reduce reliance on China, which currently dominates the global REE market. Forecasts suggest that Africa's contribution to the global REE supply could reach 10% by 2030, a significant increase from its negligible production in 2020. The year 2025 is anticipated to be a pivotal year for the African REE sector, with several new mining endeavors in countries like Malawi and South Africa expected to commence operations. Notably, the major companies involved in REE mining in Africa are primarily registered in Western countries, including firms like Mkango Resources, Pensana PLC, and Rainbow Rare Earths.

4.1. Active REE Mines:

Currently, the number of active REE mines in Africa is limited.

Burundi:
- Gakara Mine: Located in Burundi , the Gakara Mine was operated by Rainbow Rare Earths, a UK-based company. The Gakara mine holds the distinction of being the first modern African rare earth project, with operations commencing in 2017. However, operations at the Gakara mine have been suspended since 2021. As of early 2025, Rainbow Rare Earths is reportedly in discussions with the government of Burundi to restart operations at the mine. Given its current suspended status, the Gakara mine is unlikely to contribute to active REE production in Africa as of April 2025.

4.2. Planned REE Mines:

Several REE mining projects across Africa are in advanced stages of planning and are expected to begin production in the near future.

Malawi:
- Songwe Hill Project: Situated in Malawi , the Songwe Hill Project is being developed by Mkango Resources, a Canadian exploration and development company. Mining operations at Songwe Hill are slated to commence in February 2025, with the processing of the mined ore expected to accelerate by July of the same year. The project is anticipated to commence production in 2025, potentially as early as February. The Songwe Hill mine has mineral resources totaling 18.1 million tons and is expected to have an 18-year lifespan, with an average annual production target of 5,954 tons. Initially, the mine is projected to produce 2,000 tons per year of rare earth oxides. The commencement of operations at Songwe Hill in 2025 will mark a significant step for Malawi in becoming an REE producer in Africa.
- Kangankunde Project: Located in Malawi , the Kangankunde Project is being pursued by the Australian firm Lindian Resources. Lindian Resources has stated its aim to start production at the Kangankunde project in 2025. While specific details regarding the production capacity and reserves were not available in the provided snippets, the planned commencement of production in 2025 indicates that the Kangankunde project will contribute to Malawi's growing role in the African REE market.
South Africa:
- Steenkampskraal Mine: Located in the Western Cape Province of South Africa, approximately 71 kilometers north of Vanrhynsdorp , the Steenkampskraal Mine is owned by Steenkampskraal Holdings, a South African company. The company is aiming for full mining production to commence in 2025. Construction of a new processing plant at the mine is scheduled to begin by mid-2025, with the first production from the new plant anticipated in the second quarter of 2026. Prior to this, refurbishment of the existing mine infrastructure is underway, with the refurbishment of the decline shaft and headgear planned to start during the first quarter of 2025. The Steenkampskraal Mine is considered to have one of the highest grades of REE in the world, containing all fifteen rare earth metals, including significant deposits of neodymium and praseodymium, with total rare earth oxides estimated at 86,900 tons. While the mine is targeting production in 2025, the major output from the new processing plant is expected in 2026. However, the ongoing infrastructure refurbishment indicates significant progress towards restarting operations at this high-grade REE deposit.
- Phalaborwa Project: Situated in the Limpopo province of South Africa, near the Kruger National Park , the Phalaborwa Project is being developed by Rainbow Rare Earths, a UK-based company that also operated the Gakara mine in Burundi. The Phalaborwa project is set to launch in 2026. Rainbow Rare Earths is conducting a definitive feasibility study for the project between 2024 and 2025, with the construction phase projected to occur between 2026 and 2027. First production from the Phalaborwa mine is anticipated in the last quarter of 2027. The project is estimated to hold 30.4 million tons of minerals and is expected to be one of the most cost-effective producers of separated magnet rare-earth oxides globally. While the Phalaborwa project is a significant undertaking for Rainbow Rare Earths in South Africa, its production is not expected to commence until after April 2025.
Tanzania:
- Ngualla Project: Located near Ngwala Village in the Songwe Region of Tanzania , the Ngualla Project is being advanced by Peak Rare Earths, an Australian company. The Ngualla project is considered to host one of the largest high-grade and low-cost Neodymium-Praseodymium (NdPr) rare earth deposits globally, with an estimated mineral resource of 18.5 million tons. Peak Rare Earths is progressing towards production at the Ngualla site, with a concentration plant planned on-site for processing the mined resources. A bankable feasibility study for the project was finalized in October 2022, and a strategic cooperation agreement for offtake was signed with the Chinese group Shenghe Resources in the same month. While the project is moving forward, the provided snippets do not specify an exact production start date within April 2025, suggesting it may be later. The Ngualla project represents a substantial long-term REE production opportunity for Tanzania.
Angola:
- Longonjo Project: Situated in Angola , the Longonjo Project is owned by Pensana, a UK-based company. The Longonjo project involves an open-pit mine and a flotation concentration plant and has an estimated mineral resource of 313 million tons. Pensana updated the output forecasts for the Longonjo mine in October 2023 and secured an $80 million loan in January 2025 to expedite the project's rollout. The project is anticipated to produce 40,000 tonnes per year of mixed rare earth sulfate, which will be processed at a refinery in the UK. The Longonjo project has the potential to supply 5% of the world's magnet metal REEs demand. However, the commissioning of the Longonjo project is projected for 2029, indicating that significant production is unlikely before April 2025.
Uganda:
- Makuutu Rare Earths Project: Located in Uganda, spanning six licenses over an area of 298 square kilometers , the Makuutu Rare Earths Project is being developed by Ionic Rare Earths, an Australian company. Ionic Rare Earths expects the Makuutu mine to begin production in 2026. The project has a total mineral resource estimate of 532 million tons and is estimated to host 126,000 tons of neodymium and praseodymium. The feasibility study for the first phase of the project anticipates a production of 1,300 tons per year over the initial ten years and 1,160 tons per year over 35 years. Approval for the demonstration plant was granted by Uganda's Ministry of Energy and Mineral Development in April 2023. While Makuutu represents a substantial REE resource, its production is not expected to commence until 2026.

5. Rare Earth Element (REE) Mining in South America:

South America possesses significant potential in the rare earth element (REE) market, with Brazil holding the world's second-largest reserves. While the region's current REE production is considerably lower than that of China, which dominates the global supply, several projects in Brazil and Chile are under development, aiming to increase Western supply and diversify the market. Latin America has historically attracted substantial foreign direct investment in its mining sector, and with the increasing global focus on securing critical minerals, the region is poised to capitalize on its REE resources.

5.1. Active REE Mines:

Currently, Brazil is the primary South American country with active REE mining operations.

Serra Verde Project (Pela Ema deposit): Located in Minaçu, Goiás state, Brazil , the Serra Verde Project, focusing on the Pela Ema deposit, is operated by the Serra Verde Group, a company with Brazilian and Canadian affiliations. The project commenced commercial production of mixed rare earth concentrate in January 2024. The Pela Ema deposit is characterized as a large, long-life ionic clay deposit rich in high-value heavy and light rare earth elements, including neodymium, praseodymium, terbium, and dysprosium. Serra Verde Group is planning to ramp up its production of rare-earth oxide to an annual delivery of 5,000 tons by 2026, with potential plans to double this output by 2030. Notably, Serra Verde is currently the only significant producer outside of Asia capable of producing all four critical magnet REEs at scale, positioning Brazil as a key player in efforts to diversify the global supply chain.

5.2. Planned REE Mines:

Several REE projects are in the planning and development stages in South America, primarily in Chile and Brazil.

Chile:
- Penco Module Project: Situated in the Bio-Bio region of Chile, near Concepción , the Penco Module Project is being developed by Aclara Resources, a Canadian company. Aclara Resources is progressing through the environmental permitting process for the Penco project and aims to file a response to the consolidated report from Chile's Environmental Service Assessment by the end of the first quarter of 2025. The company is targeting the commencement of production at the Penco module by 2028. The project area covers a 6-square-kilometer ionic clay deposit rich in heavy rare earths, with measured and indicated resources totaling 27.5 million tonnes grading 2,292 parts per million total rare earth oxides (TREO), for 62,900 tonnes of contained TREO. Aclara Resources believes that its projects in Chile and Brazil together have the potential to produce an amount equivalent to 16% of China's official heavy rare earths production. The company is also developing a metal and alloy operation in a joint venture, aiming to define a site for a pilot plant focused on producing alloys for permanent magnets by the first quarter of 2025.
Brazil:
- Carina Project: Located in the Goiás state of Brazil , the Carina Project is also being developed by Aclara Resources. Aclara Resources anticipates that the pilot plant for the Carina project will commence operations by the second quarter of 2025. The company expects to submit an environmental impact study for the Carina project in the second quarter of 2025, and the pre-feasibility study for the project is on track for completion in the third quarter of 2025. The Carina project currently has inferred resources of approximately 298 million tonnes grading 1,452 ppm TREO, for a total of 432,000 tonnes of TREO. Aclara Resources intends to allocate a significant portion of recent funding, along with potential government support, to advance the Carina project towards becoming a significant REE producer in Brazil.

6. Conclusion:

The analysis of lithium and rare earth element mining in Africa and South America as of April 2025 reveals a dynamic and evolving landscape driven by the increasing global demand for these critical minerals. Africa is rapidly emerging as a significant player in the lithium market, with Mali and Ghana joining Zimbabwe as key producers. This growth is largely fueled by substantial investments from Chinese companies, although Western interest is also on the rise, suggesting a potential diversification of the supply chain in the future. South America maintains its established dominance in lithium production, with Argentina demonstrating strong growth potential through numerous expansion projects and new ventures. Chile continues to be a major global supplier, with significant production from the Salar de Atacama. Bolivia, despite its vast lithium resources, faces ongoing developmental and political challenges that hinder large-scale production in the near term.

In the rare earth element sector, both Africa and South America are in earlier stages of development compared to lithium. Africa shows promising potential with several planned projects in Malawi and South Africa aiming to commence production in 2025 and beyond. However, the only consistently active major REE mine in Africa, Gakara in Burundi, remains suspended as of April 2025. South America, particularly Brazil, has an active REE producer in Serra Verde, which holds a unique position as a significant non-Asian supplier of all four critical magnet REEs. Chile also has planned projects, such as Aclara Resources' Penco Module, which are progressing through the permitting stages.

The development of lithium and REE resources in both Africa and South America is heavily influenced by international investments, particularly from China, but also increasingly from Australian, Canadian, and European companies. The growth in these mining sectors presents both opportunities and challenges for the respective regions. Opportunities include economic development, job creation, and a chance to play a crucial role in the global energy transition. Challenges involve navigating complex regulatory frameworks, addressing environmental and social concerns, and ensuring that the benefits of mining operations are realized by local communities and national economies. As the world continues to transition towards cleaner energy and relies increasingly on advanced technologies, the strategic importance of Africa and South America in the supply of lithium and rare earth elements is set to grow significantly in the coming years.

Sources used in the report

greencarcongress.com

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