Europe’s mineral security is increasingly linked to mining and processing projects in Africa and the Middle East, but much of the capital securing future supplies is coming from Japan, the United States, China and regional institutions. The latest investments show that competition is no longer focused only on mining deposits. Investors are increasingly targeting processing, refining, energy infrastructure and downstream manufacturing, giving early financiers greater influence over future supply chains.
Japan Secures Namibia Rare Earths
The Lofdal heavy rare-earth project in Namibia is a key example. Its potential production of dysprosium, terbium and yttrium is important for permanent magnets used in electric vehicles, wind turbines and advanced industrial equipment.
Japan’s JOGMEC and Toyota Tsusho completed a C$23 million earn-in for a 50% participating interest and committed up to another C$47.7 million for feasibility and pre-development work. For Europe, the development highlights a strategic gap: European manufacturers may eventually buy the material, but Japan is providing the capital that is helping shape the project at an early stage.
Rare Earths and Batteries Attract Foreign Capital
In Madagascar, the US International Development Finance Corporation has committed up to US$4.84 million for pilot processing, metallurgical testing and environmental work at the Ampasindava rare-earth project. The project could produce around 4,000 tonnes of rare-earth oxides annually, including approximately 1,700 tonnes of magnet-related material, with production targeted from 2028. European group Solvay is among the potential refining and commercial partners.
Morocco is emerging as another important industrial partner for Europe. The Gotion Power Morocco lithium iron phosphate battery plant has secured a US$110 million African Development Bank loan, with potential additional financing of up to US$162.6 million. The first phase is planned at 10 GWh annually, with long-term capacity potentially reaching 100 GWh and local industrial integration targeted at around 70%.
Africa Pushes for More Processing
African governments are increasingly seeking to keep more mineral value within their economies. In Guinea, new rules require domestically refined gold to reach 95.5% purity before export. The policy is influencing Predictive Discovery’s Bankan Gold Project, where on-site refining is being considered as part of a development estimated at approximately US$463 million.
In Egypt, a potential US$930 million phosphate project could combine mining, beneficiation, phosphoric acid and fertilizer production. Jordan is also expanding downstream phosphate and potash industries, including a proposed US$1 billion JIFCO expansion. These developments could diversify European supplies, but they also mean that more processing margins and industrial activity will remain in producing countries rather than flowing to European processors.
Copper Supply Becomes More Strategic
Copper is another major area of competition. In Oman, Solidcore Resources and Minerals Development Oman are developing the Khabiyat copper-gold project, with Solidcore able to earn up to 60%. In the Democratic Republic of Congo, Ivanhoe Mines is building an integrated copper operation at Kamoa-Kakula, combining mining, smelting and renewable power. The project’s smelter was operating at around 60% capacity, while a planned energy system includes 433 MWp of solar generation and 1,107 MWh of battery storage.
Europe Needs Earlier Strategic Investment
European companies remain active in Africa as mine operators, technology providers, investors and customers. Eramet in Senegal and Endeavour Mining in Côte d’Ivoire demonstrate the continuing importance of European corporate and capital-market participation. The broader financing trend is clear. Japan, the US, China and regional development institutions are often providing capital earlier in the project cycle, when technical and commercial risks are highest. That early involvement can determine ownership, processing routes, technology partnerships and long-term supply agreements.
For Europe, securing critical minerals will therefore require more than finding alternative suppliers. It will increasingly mean participating financially in the projects and processing infrastructure that will produce those minerals. As Africa and the Middle East move toward greater beneficiation and downstream manufacturing, Europe risks becoming an important customer without being an equally important investor in the supply chains on which its industrial and energy-transition economy depends.
