Botswana’s Role in Diversifying Critical Mineral Supply

Businesses seeking to diversify their rare earth sourcing away from China could find a potential competitor emerging in Botswana.

The detection of critical minerals and rare earth elements in the southern African nation represents a significant development for organisations looking to reduce supply chain concentration risk.

Rare earth elements and other critical minerals have become key commodities due to the increase in electric vehicles, smartphones and renewable energy.

Tsodilo Resources Limited has detected these materials within its operations, offering potential relief for stretched global supply networks.

The case for supply chain diversification

Rare earth elements consist of 17 metallic elements which have become vital for modern manufacturing. Their unique properties make them essential components in smartphones, solar panels and high-powered magnets.

According to the International Energy Agency (IEA), China controls 61% of global rare earth production and approximately 90% of processing operations. The nation's dominance gives it considerable influence over the global supply, making supply chain vulnerability a strategic concern for high-tech manufacturers.

Growing geopolitical tensions in 2025, with trade wars and inflation, have caused businesses to diversify their supply chains. However, China's dominance has made this difficult – many countries have found critical materials across their landscape but lack the infrastructure, potency or volume to meet demand.

Tsodilo Resources Limited has announced the verification of critical minerals and rare earth element mineralisation from its 100%-owned Gcwihaba Metals Project in northwest Botswana. The company is an exploration-stage business engaged in the acquisition, exploration and development of mineral properties in Botswana.

"The targets were originally identified as geophysical anomalies through ground magnetic and gravity surveys. Subsequent diamond core drilling has confirmed that these anomalies host skarn-type mineralisation containing an extensive suite of minerals," the company said.

What the exploration has revealed

The site is polymetallic, including 15 rare earth elements and critical materials such as cobalt, copper, nickel, silver and vanadium. The company has developed a conceptual exploration target across 81 to 97 million tonnes at grades 0.05% to 1.49% total rare earth oxide (TREO). Tsodilo has identified 20 out of 60 CML minerals at the Gcwihaba site.

"The 1.49% TREO intercept at C27 represents the highest grade recorded so far for Gcwihaba," says James M. Bruchs, Chairman and CEO at Tsodilo.

"These results validate our systematic exploration approach and demonstrate evidence of a polymetallic REE skarn system with both vertical extent and grade."

Beyond rare earth elements, the skarn system has returned encouraging base and precious metal values, including copper up to 0.41%, cobalt up to 320 ppm and silver up to 5.1 g/t.

This is the first systematic assessment of REE potential within the project, with 76% of samples returning with detectable REE mineralisation. The minerals were found 20 to 50 metres below the surface, making them relatively accessible and less expensive to extract.

Implications for diversified sourcing strategies

The potential for Botswana to become a supplier of critical minerals could be a significant step forward for organisations pursuing diversified supply chains. It could bring greater economic prosperity for the country alongside major trade partnerships.

For businesses in other countries, Botswana's potential supply could reduce dependence on China and mitigate geopolitical risk within procurement strategies.

Tsodilo is planning a 15,000 metre drilling programme throughout 2026. James confirms that "the 2026 drilling program will focus on defining high-grade REE zones while further evaluating the polymetallic potential of the system to support preparation of an initial mineral resource estimate."

The campaign will support preparation for an initial mineral resource statement, which could provide supply chain leaders with crucial information for long-term sourcing decisions.