Women and children work at an artisanal cobalt mine in the South Kivu province of the Democratic Republic of the Congo. Photo: Augustin Wamenya/Anadolu Agency/Getty Images
As the global energy transition accelerates, critical minerals such as lithium, cobalt, graphite, and rare earth elements have moved to the centre of G20 deliberations. Indonesia, India, and Brazil, three of the largest economies in the Global South, have each used their recent presidencies to spotlight the role of these minerals in enabling a just and sustainable transition.
Under Indonesia’s 2022 G20 presidency, the spotlight fell on domestic beneficiation and resource sovereignty, with a particular emphasis on nickel processing and local value addition. The Bali Leaders’ Declaration emphasised building resilient mineral supply chains and aligned closely with Indonesia’s assertive policies on export bans and downstream processing. India’s 2023 G20 presidency continued the momentum, calling for global cooperation to avoid monopolistic control over mineral resources and pushing for equitable access through the Trade and Investment Working Group and the Energy Transitions Working Group. Brazil’s 2024 presidency has extended the conversation by integrating Latin America’s mineral wealth into global green value chains, while also stressing sustainable mining practices.
Looking ahead, South Africa’s G20 presidency (2024-25) has committed to championing critical minerals as an engine for inclusive growth and sustainable development across the continent. To make this ambition a reality, South Africa must lead a shift in the global conversation, one that repositions critical minerals not simply as inputs for clean energy technologies, but as catalysts for industrialisation, environmental justice and fairer terms of trade for resource-rich countries.
Rewiring global value chains for justice
The current structure of global critical mineral value chains is deeply skewed. Raw materials are extracted predominantly from countries in the Global South but are processed and manufactured into high-value products in the Global North or in advanced Asian economies. For instance, the Democratic Republic of the Congo (DRC) produces more than 70% of the world’s cobalt, but about 80% of the global refining capacity is based in China. Similarly, while Chile and Argentina are among the top three global producers of lithium, the processing and battery production largely occur in China, Japan and South Korea.
South Africa is uniquely positioned to advocate for a more balanced distribution of mineral-related value addition. The country has significant reserves of manganese, platinum group metals (PGMs), and vanadium, key inputs for battery technologies and hydrogen production. Moreover, the African Union’s endorsement as a permanent G20 member provides the continent with a stronger collective voice. South Africa can act as a convener of G20 and AU member states to promote regional strategies for mineral beneficiation and cross-border cooperation through instruments such as the African Continental Free Trade Area (AfCFTA) and the Africa Green Minerals Strategy.
Learning from and partnering with other G20 nations
Several G20 countries offer policy models that South Africa can learn from, or strategically partner with, to reshape mineral governance. Australia, for example, is leveraging its critical minerals strategy to attract downstream investment, promote domestic refining and establish clean energy trade partnerships with allies such as Japan, the United States and the European Union. The country’s Critical Minerals Office is a dedicated institution that coordinates these efforts and provides strategic support to domestic producers.
The EU, under its 2023 Critical Raw Materials Act, has set targets to domestically extract at least 10%, process 40% and recycle 15% of its strategic raw materials by 2030. It has also established strategic partnerships with mineral-rich countries in Africa and Latin America to promote responsible sourcing. But there are concerns that these partnerships still risk replicating extractive dynamics unless they incorporate meaningful technology transfer, community consent and environmental safeguards.
As South Africa assumes the presidency, it should call for a G20-AU working group on critical minerals that goes beyond trade facilitation to address issues of ownership, transparency and development. This group could, for example, coordinate data-sharing platforms to track supply chain emissions and human rights violations and standardise ESG (environmental, social and governance) metrics for mining operations. It could also promote technology sharing for key technologies that mitigate environmental degradation such as the latest minerals metals processing technology calling for technology waivers like those agreed on during the Covid-19 crisis.
Championing responsible and transparent mining
Globally, the extractive sector has long been plagued by opacity, elite capture and environmental degradation. South Africa can use its presidency to push for stronger accountability frameworks. For example, Canada’s Extractive Sector Transparency Measures Act (ESTMA) requires mining companies to publicly disclose payments made to governments, including taxes and royalties. The adoption of similar laws in G20 countries could limit illicit financial flows, strengthen domestic revenue mobilisation and ensure communities benefit from mining activities.
In addition, the G20 should support national and regional efforts to build capacity for environmental monitoring and the enforcement of community consultation rights. In countries such as Indonesia and Bolivia, failure to obtain free, prior and informed consent (FPIC) from indigenous and local communities has led to widespread protests and mine closures. The AU’s African Mining Vision (AMV) already contains progressive provisions on community rights and environmental stewardship. South Africa should push for the AMV to be a reference point in G20 discussions on responsible sourcing.
Boosting local processing and green industrialisation
G20 countries must also step up support for industrial development in mineral-producing nations. One way is to provide concessional finance and technical assistance for midstream infrastructure, such as refineries, processing plants, and infrastructure corridors. For example, India’s public-private initiatives to build lithium-ion battery gigafactories can offer a template for technology co-development and public investment.
China’s approach, although controversial for its dominance, demonstrates how industrial policy, long-term planning and strategic public finance can scale processing capacity. From 2010 to 2020, China invested more than $16 billion in overseas lithium and cobalt assets while simultaneously building the world’s largest battery manufacturing ecosystem. Although this model may not be directly replicable, it underscores the importance of state-led coordination and financial backing.
South Africa should advocate for a G20 critical minerals innovation fund, with a ring-fenced fund for African and other resource-rich developing countries to build green mineral value chains. This could support existing plans such as the AU’s Green Mineral Value Chain Investment Fund. The fund could finance innovation in mineral recycling, substitution technologies, and environmentally sustainable extraction methods.
Creating jobs and building skills
Critical minerals policy must be people-centred. The energy transition is not only about technology, it is also about livelihoods. According to the International Energy Agency (IEA), demand for lithium, cobalt and graphite is expected to grow by more than 400% by 2040 under a net-zero scenario. This growth presents an enormous opportunity to create decent jobs, especially in mining, metallurgy, environmental engineering and logistics.
Countries such as Germany and South Korea have begun investing in upskilling programmes to build domestic capacity in battery engineering and mineral geoscience. South Africa could coordinate with other G20 nations to establish a global critical minerals skills compact, with a strong emphasis on training women and youth in mineral value chains. The compact could offer scholarships, apprenticeships, and exchange programmes between universities, technical colleges and industries in the G20.
A mineral future built on equity
South Africa’s presidency comes at a critical moment, when the world must choose between replicating old patterns of exploitation or building new models of cooperation. By leveraging its strategic position, the African Union’s new G20 seat, and the momentum built by previous Global South presidencies, South Africa can play a transformative role.
With bold leadership and a collaborative spirit, South Africa can help rewire the global race for critical minerals into a path for shared prosperity.
Karabo Mokgonyana is a renewable energy campaigner and Kudakwashe Manjonjo is a just transition adviser at Power Shift Africa.