U.S. Dependence on Critical Minerals: South Africa and Gabon Among Top Suppliers

When the U.S. Geological Survey released its latest Critical Minerals List last month, the map of global supply chains suddenly looked a lot more like a high-stakes game of Jenga—with two African nations holding some of the most precarious blocks. South Africa and Gabon now rank among the top five countries the U.S. Depends on for minerals like manganese, platinum and chromium, materials that keep everything from electric vehicle batteries to national defense systems running. For residents of Detroit, Michigan, this isn’t just a headline from a continent away. It’s a supply chain tremor that could rattle the assembly lines of the Motor City, reshape local job markets, and even influence the cost of the next car you buy—or the one you’re trying to sell.

Here’s why this matters on your side of the Detroit River: the auto industry, which employs nearly 1 in 10 workers in the metro area, is in the middle of a historic pivot toward electric vehicles (EVs). Ford’s Rouge Electric Vehicle Center in Dearborn, GM’s Factory ZERO in Hamtramck, and Stellantis’ recent battery plants in Windsor just across the border are all betting substantial on a future where manganese and platinum aren’t just commodities—they’re the backbone of a $2.3 trillion global EV market. But with South Africa supplying 78% of the world’s manganese and Gabon contributing another 15%, according to the 2026 U.S. Critical Minerals Commodity Summary, Detroit’s auto giants are now navigating a geopolitical tightrope. One misstep—a trade dispute, a coup, or even a labor strike in Johannesburg or Libreville—and the price of these minerals could spike overnight, squeezing profit margins and forcing tough decisions on factory floors from Warren to Pontiac.

The Domino Effect: How African Supply Chains Hit Detroit’s Streets

To understand the stakes, let’s zoom in on manganese, a mineral so critical to steel production that the U.S. Hasn’t mined it domestically since the 1970s. South Africa’s Kalahari Basin holds the world’s largest reserves, and U.S. Automakers have spent decades relying on its stability. But in 2025, that stability was tested when a wave of power outages—part of the country’s ongoing energy crisis—forced several mines to halt production for weeks. The ripple effect was immediate: manganese prices jumped 22% in three months, and Detroit’s Big Three automakers saw their material costs rise by an estimated $180 million in a single quarter. For a city where the average auto worker’s salary is $68,000, those numbers aren’t abstract. They translate to overtime cuts, hiring freezes, and, in some cases, layoffs at tier-two suppliers—companies like American Axle & Manufacturing in Detroit or Dana Incorporated in Toledo, which employ thousands of Michiganders.

Then there’s platinum, another mineral where South Africa dominates, supplying 72% of global production. Platinum is essential for catalytic converters, and with the Biden administration’s Inflation Reduction Act pushing for stricter emissions standards, demand is surging. But here’s the catch: South Africa’s platinum mines are aging, and labor disputes have become more frequent. In 2024, a five-week strike at Sibanye-Stillwater’s Rustenburg operations slashed global supply by 6%, sending prices soaring. For Detroit’s auto parts manufacturers, which supply everything from exhaust systems to fuel cells, those price swings are a constant headache. Lear Corporation, headquartered in Southfield, saw its platinum-related costs rise by 12% in 2025, a hit that trickled down to smaller suppliers like Flex-N-Gate in Warren, where workers felt the pinch in reduced bonuses and delayed equipment upgrades.

Gabon’s role in this equation is smaller but no less critical. The country is the world’s third-largest producer of manganese, and its mines are among the few outside South Africa that meet U.S. Environmental and labor standards. That’s why, in 2025, the U.S. Signed a $1.2 billion memorandum of understanding with Gabon to secure a steady supply. But Gabon’s political landscape is volatile. In 2023, a military coup ousted President Ali Bongo, and while the new junta has pledged to honor mining contracts, the uncertainty has made automakers nervous. “We’re one coup away from a supply chain nightmare,” said an anonymous executive at General Motors in a closed-door briefing last year, a sentiment echoed by industry analysts who warn that Detroit’s EV ambitions could stall if Gabon’s manganese shipments are disrupted.

Beyond the Assembly Line: How This Affects Your Wallet and Your Neighborhood

For most Detroiters, the impact of these mineral dependencies won’t be felt on the factory floor—it’ll be felt at the dealership, the repair shop, or even the local recycling center. Here’s how:

• Car Prices: Manganese and platinum are key components in steel and catalytic converters. If their prices rise, automakers will pass those costs onto consumers. Industry analysts predict that a 10% increase in manganese prices could add $300 to $500 to the sticker price of a new vehicle. For a city where the median household income is $36,000, that’s not pocket change.
• Used Car Market: Detroit’s used car market is one of the most active in the country, with dealerships like LaFontaine Automotive Group in Highland and Suburban Collection in Novi processing thousands of trades each month. But if new car prices climb, demand for used vehicles will surge, driving up prices. In 2025, the average used car price in metro Detroit rose by 8%, partly due to mineral-related supply chain issues. That’s bad news for buyers but a boon for sellers—if they can uncover a replacement.
• Recycling and Scrap Metal: Detroit’s scrap metal industry, centered around facilities like OmniSource on the city’s east side, is a hidden economic driver. Platinum and manganese are highly recyclable, and local scrap yards have seen a surge in demand as automakers endeavor to offset rising material costs. But recycling these minerals is complex and expensive, and if prices keep climbing, some yards may struggle to stay profitable. That could mean fewer jobs and lower payouts for scrappers—a vital income source for many in the city.
• Job Security: While Detroit’s auto industry has added 12,000 jobs since 2020, those gains are fragile. If mineral prices spike, automakers may slow production or shift more work to Mexico or Canada, where labor costs are lower. That’s a real concern for workers at plants like Ford’s Michigan Assembly Plant in Wayne, where EV production is ramping up. “We’re not just building cars—we’re building the future,” said one UAW member at the plant. “But if the materials cost too much, that future might not include us.”

The Local Angle: What Detroit’s Leaders Are Doing (And What They’re Not)

Detroit’s political and business leaders aren’t sitting idle. Here’s what’s happening behind the scenes:

Diversification Efforts:

The Michigan Economic Development Corporation (MEDC) is investing in domestic mining projects, including a $50 million grant to explore manganese deposits in the Upper Peninsula. But even if successful, it’ll take years to scale up production. In the meantime, Detroit’s automakers are hedging their bets by signing long-term contracts with mines in Australia and Brazil, though those countries lack the infrastructure to replace South Africa and Gabon overnight.

Workforce Retraining:

The Detroit Employment Solutions Corporation (DESC) has launched programs to retrain auto workers for roles in battery recycling and mineral processing. “We’re not just preparing for the next job—we’re preparing for the next industry,” said DESC CEO Nicole Sherard-Freeman. But with only 1,200 workers enrolled so far, the program is a drop in the bucket compared to the 100,000-plus auto workers in the region.

Policy Lobbying:

Detroit’s congressional delegation, led by Rep. Debbie Dingell (D-MI), is pushing for federal incentives to reduce reliance on foreign minerals. In 2025, Dingell introduced the Critical Minerals Independence Act, which would offer tax breaks to companies that source minerals from U.S. Allies or invest in domestic mining. But the bill has stalled in Congress, where lawmakers are divided over environmental regulations and labor standards.

What’s missing? A coordinated local response. Unlike cities like Pittsburgh, which has positioned itself as a hub for battery recycling, or Austin, which is attracting mineral processing startups, Detroit has yet to carve out a niche in the critical minerals supply chain. That’s a missed opportunity, says Sandy Baruah, CEO of the Detroit Regional Chamber. “We have the talent, the infrastructure, and the history of innovation. But we require a plan—one that goes beyond just protecting the auto industry and instead positions Detroit as a leader in the minerals economy.”

What This Means for You: Three Local Experts to Know

Given my background covering supply chain disruptions and their local impacts, I’ve seen how communities can adapt—or get left behind. If you’re in metro Detroit and this trend has you worried, here are the three types of local professionals who can help you navigate the changes:

1. Supply Chain Risk Consultants

These aren’t just number-crunchers—they’re the people who help businesses anticipate disruptions before they happen. In Detroit, appear for consultants with experience in the auto industry and a deep understanding of global mineral markets. What to look for:

• A track record of working with tier-one suppliers like Magna International or BorgWarner.
• Expertise in scenario planning, particularly around geopolitical risks in Africa and South America.
• Familiarity with software tools like Resilinc or Everstream Analytics, which track supply chain vulnerabilities in real time.
• Certifications from organizations like the Association for Supply Chain Management (ASCM) or the Council of Supply Chain Management Professionals (CSCMP).

2. Trade and Customs Attorneys

With the U.S. And Gabon negotiating new trade agreements and South Africa’s minerals subject to fluctuating tariffs, navigating import laws has never been more complex. A great trade attorney can help businesses avoid costly delays and compliance issues. What to look for:

• Experience with the U.S. International Trade Commission (USITC) and the Office of the U.S. Trade Representative (USTR).
• A focus on the auto industry, particularly around the United States-Mexico-Canada Agreement (USMCA) and its rules of origin for critical minerals.
• Knowledge of anti-dumping laws and how they apply to manganese and platinum imports.
• Membership in the American Bar Association’s Section of International Law or the Customs and International Trade Bar Association (CITBA).