Canadian exploration firm Tsodilo Resources Limited has announced a major rare earth and critical minerals discovery in Botswana, strengthening Canada’s foothold in the escalating supply chain competition dominated by the United States and China.
The discovery at Tsodilo’s Gchwihaba Metals project near Shakawe comes at a time when Western nations are working to lessen reliance on Chinese rare earth processing, even as Beijing strengthens its grip on the sector.
Exploration of the C26 and C27 targets has confirmed a high-grade polymetallic system located between 20 and 50 metres below ground level — a depth considered favourable for potential commercial mining, pending further technical assessments.
Tsodilo Resources Limited reported that the site contains 15 rare earth elements alongside five additional critical minerals: copper, cobalt, nickel, vanadium and silver. Geological studies indicate that the C26 and C27 skarns host all 15 rare earth elements listed on the United States Geological Survey 2025 Critical Minerals List.
According to the company, the targets were initially identified as geophysical anomalies through magnetic and gravity surveys, with follow-up diamond core drilling confirming skarn-type mineralisation rich in a broad range of elements.
Strategic importance for Botswana
Rare earth elements are vital for electric vehicles, wind turbines, battery storage, defence electronics and advanced telecommunications systems. Demand has accelerated as countries push energy transition and industrial upgrade strategies.
Traditionally known for diamonds through its long-standing collaboration with De Beers Group, Botswana has increasingly focused on diversifying its mining portfolio. The Botswana Chamber of Mines has highlighted government efforts to expand exploration into base metals, coal and critical minerals to reduce diamond dependence and attract fresh foreign investment.
Botswana is widely viewed as one of Africa’s most mining-friendly destinations, supported by established infrastructure, a transparent regulatory system and a history of cooperation between the state and private sector.
Intensifying global competition
The announcement comes amid mounting global rivalry for secure rare earth supplies. China continues to dominate processing capacity through firms such as China Northern Rare Earth Group — a concentration Western governments see as a strategic risk.
In response, the United States and the European Union have rolled out policies aimed at diversifying sourcing and strengthening supply chains through partnerships with stable jurisdictions. African nations including Namibia, Tanzania and DR Congo have also attracted growing interest from both Western and Chinese investors seeking exploration rights and long-term supply agreements.
The International Energy Agency has projected that demand for key critical minerals could more than double by 2030 under existing energy transition policies.
For Botswana, a commercially viable rare earth development would expand export revenues and strengthen its integration into global supply networks linked to clean energy, advanced manufacturing and defence industries.
Tsodilo stated it will continue drilling to further define the scale of mineralisation while maintaining engagement with regulators and local communities. Any eventual development will be subject to environmental assessments and regulatory clearance.