Investing in Liberia: Africa’s Next Hotspot for Lithium and Rare Earths

Liberia is transitioning from its iron-ore legacy into a bold new era of critical minerals development, positioning itself as a rising force in Africa’s mining landscape. With decades of experience in gold, diamond, and iron extraction, the country has built the technical foundation and infrastructure necessary to support this next chapter, one focused on powering the global green economy.

As the demand for battery metals and advanced materials accelerates, Liberia is stepping into the spotlight with newly identified reserves of lithium, cobalt, nickel, and rare earth elements. These critical resources are vital to technologies such as electric vehicles, renewable energy systems, and next-generation electronics, sectors at the heart of the global energy transition.

Investing in Liberia means entering a high-potential frontier for clean-tech minerals, where policy reforms, expanding exploration, and foreign investor momentum are transforming the landscape. No longer simply an exporter of raw materials, Liberia is advancing toward value-added mining and local processing, while reinforcing its reputation for political stability and responsible resource governance.

With natural wealth, strategic global partnerships, and a forward-looking vision, Liberia is rapidly becoming Africa’s next critical minerals success story.

1. A Legacy of Iron Ore and Gold

Liberia’s modern mining resurgence is built upon a long-standing legacy of iron ore and gold extraction, industries that have shaped the country’s economic and industrial framework for decades. These two commodities have not only generated substantial revenue but also laid the foundation for future development in infrastructure, human capital, and governance capacity.

The most prominent player in Liberia’s iron ore sector is ArcelorMittal, which began operations in the early 2000s and currently operates in the Nimba Mountain region, with logistical links to Buchanan Port via a 243-kilometer railway. The company’s Phase II expansion plan, aimed at increasing annual production from 5 million tonnes to 20 million tonnes by mid-2025, involves an estimated $1.2 billion investment, one of the largest private sector commitments in the country’s history ^[1].

This expansion is more than just a production boost, it includes modernization of rail infrastructure, upgrades to the Buchanan export terminal, and the creation of new jobs across Nimba, Bong, and Grand Bassa counties. The broader impact of this mining infrastructure extends to logistics, telecommunications, housing, and social services, catalyzing economic growth in surrounding regions.

Meanwhile, Liberia’s gold mining sector has also gained traction, particularly through the activities of artisanal and small-scale miners, alongside commercial ventures. While often overshadowed by iron ore in terms of volume and visibility, gold continues to play a vital role in export revenues and rural employment. Companies like Avesoro Resources (New Liberty Gold Mine) and Pasofino Gold are advancing exploration and production efforts in western Liberia, boosting the country’s profile as a diversified mineral economy.

Mining currently contributes over 11% of Liberia’s GDP, a share expected to rise further as new projects come online and existing operations expand^[2]. The sector is also a significant source of foreign exchange earnings and government revenue, with royalties, corporate taxes, and employment-related contributions supporting national development.

This historical strength in iron and gold mining has equipped Liberia with the technical expertise, governance experience, and infrastructure backbone needed to pivot toward critical mineral exploration. The presence of processing facilities, skilled labor, and investor confidence has positioned Liberia to transition seamlessly into the next phase of resource development, one focused on lithium, rare earths, cobalt, and other battery metals vital to the global clean energy shift.

2. Unlocking Africa’s Lithium, Cobalt & Nickel Potential

Liberia is rapidly gaining recognition as an emerging hub for critical battery minerals, particularly lithium, cobalt, nickel, and copper, elements essential to the global clean energy transition. These minerals are key inputs in lithium-ion batteries, electric vehicles (EVs), renewable energy storage systems, and next-generation electronics. As global demand for these resources intensifies, Liberia is positioning itself as a high-potential supplier in Africa’s expanding critical minerals landscape.

According to the Ministry of Mines and Energy, recent geological surveys and exploration efforts have uncovered promising reserves of lithium-bearing pegmatites, cobalt-rich formations, and nickel-copper mineralization across several counties, including Grand Gedeh, Bong, and Nimba. These discoveries signal a new phase of mineral diversification, moving Liberia beyond its traditional dependency on iron ore and gold ^[3].

Recognizing the strategic importance of these commodities, the Government of Liberia has implemented key reforms to attract and protect long-term investments in critical mineral development. New updates to Liberia’s Minerals and Mining Law now offer enhanced clarity on:

• Land tenure security for exploration and production licenses
• Stabilization clauses to protect investors from abrupt fiscal or regulatory changes
• Environmental and community development provisions to ensure responsible operations
• Tax incentives and duty exemptions for imported mining equipment and processing infrastructure

These reforms are designed to provide investors with the confidence and predictability needed to engage in capital-intensive mineral projects. As Energy Capital & Power notes, these policy shifts reflect a proactive government strategy to capture greater value from Liberia’s natural endowments while aligning with global standards for ESG compliance and responsible sourcing.

Moreover, Liberia’s government is actively engaging the international mining community through licensing rounds, trade forums, and investment summits. In 2024 alone, 29 underexplored blocks were made available for international bidding, many of which include high-potential critical mineral zones ^[3].

By leveraging its geological potential and reform-driven approach, Liberia is unlocking new pathways for industrialization and clean technology value chains. The country’s critical minerals can play a vital role in regional supply chain integration and offer investors access to raw materials that are increasingly in short supply globally.

As pressure mounts to diversify supply away from traditional producers in Asia, Liberia’s emergence as a credible and secure African source of lithium, cobalt, and nickel places it firmly on the radar of battery manufacturers, EV producers, and clean energy investors worldwide.

3. Regulatory Evolution and Investor Outreach

Liberia’s growing appeal as a destination for mining investment is anchored in its proactive regulatory evolution and robust outreach to international investors. Recognizing the need to compete globally for capital and expertise, the government has undertaken substantive policy reforms aimed at improving transparency, reducing investment risk, and aligning the mining sector with international best practices.

A centerpiece of this transformation is the modernization of the Minerals and Mining Law, which now includes provisions to:

• Simplify licensing procedures
• Provide long-term security of tenure for exploration and mining rights
• Establish clear dispute resolution mechanisms
• Mandate community development agreements and environmental protections
• Introduce fiscal incentives for strategic mineral development and processing

These reforms have created a more predictable and investor-friendly environment, crucial for attracting the long-term, high-risk capital required for critical mineral exploration and processing.

In 2024, the Liberian government launched a new licensing round that released 29 underexplored mineral blocks for international bidding. These blocks were accompanied by enhanced seismic, geological, and geophysical data packages, along with cost-recovery incentives that allow investors to recoup early-stage expenditures if commercial viability is proven ^[3].

To further strengthen investor confidence, the Ministry of Mines and Energy has emphasized transparency in concession awards, digitized licensing processes, and partnered with regional and international institutions to build local governance capacity. This reflects Liberia’s commitment to responsible and sustainable mineral development, especially as it relates to high-value commodities such as lithium, cobalt, nickel, rare earths, and platinum group metals (PGMs).

Liberia’s global outreach efforts have also intensified. At Mining Indaba 2025, Africa’s largest mining investment conference, Liberian officials, including representatives from the Ministry of Mines and Energy and the National Investment Commission, showcased the country’s untapped geological potential to a global audience of investors, mining executives, and development finance institutions. Delegates promoted opportunities not just in iron ore and gold, but also in manganese, PGMs, bauxite, and battery metals, underlining the country’s shift toward a diversified critical minerals economy ^[4].

The Indaba participation is part of a broader diplomatic and economic strategy to reposition Liberia as a key player in Africa’s mineral supply chain. It reflects a new narrative, one where Liberia is not just a source of raw commodities, but a partner in value creation, local beneficiation, and sustainable industrialization.

As the global race to secure critical minerals intensifies, Liberia’s investor-friendly legal framework, combined with its active international engagement, makes it a compelling choice for mining companies, institutional investors, and strategic resource partners.

4. Bold Expansion by ArcelorMittal

ArcelorMittal, one of the world’s largest steel producers, has made Liberia a top-three global investment priority in 2025, signaling strong confidence in the country’s resource potential and regulatory improvements. The company’s Phase II expansion of its iron ore mining operations is one of the most ambitious industrial undertakings in West Africa, involving an investment of over $1.2 billion and an aggressive ramp-up of production capacity from 5 million tonnes to 20 million tonnes annually by mid-2025 ^[1].

But the expansion is about more than production volume. ArcelorMittal’s project includes comprehensive infrastructure modernization, notably the rehabilitation and upgrade of the Yekepa–Buchanan railway, a 243-kilometer corridor critical for mineral export. In parallel, the Buchanan Port has been expanded and deepened to handle larger vessels and higher export volumes, transforming it into a major regional shipping hub ^[5].

Beyond logistics, the company has had tangible socioeconomic impact. The expansion has already created over 3,000 direct and indirect jobs, many filled by Liberian nationals. ArcelorMittal has also invested in community development initiatives, building or upgrading schools, health clinics, roads, and water systems in communities near Yekepa and Buchanan. These efforts align with the government’s local content and community benefit requirements, setting a model for inclusive mining operations in the region.

By balancing commercial success with social responsibility, ArcelorMittal’s Liberia project is establishing a benchmark for integrated mining investment that delivers value both to shareholders and to local communities.

5. Commitment to ESG & Environmental Oversight

Liberia is increasingly prioritizing environmental, social, and governance (ESG) performance as a central pillar of its mining development strategy. The government, through the Environmental Protection Agency (EPA) and the Ministry of Mines and Energy, has taken decisive action to enforce environmental standards and hold operators accountable.

A notable example occurred in 2024, when China Union’s Bong Mines operation was temporarily shut down by the EPA due to violations of environmental regulations, including pollution and non-compliance with waste management protocols. Operations were only allowed to resume after the company submitted a corrective action plan and committed to remedial measures ^[6].

This enforcement reflects a broader shift in national policy, one that aligns with international ESG standards and the rising expectations of investors, communities, and trading partners. In today’s mineral markets, ESG compliance is no longer optional. Responsible sourcing, transparency, and community engagement are now seen as essential components of a sustainable mining operation.

Liberia’s growing civil society awareness and media scrutiny have further strengthened accountability. Local communities are increasingly vocal about the impacts of mining, demanding better environmental protections, fair compensation, and inclusive development. Reports from global outlets such as AP News and summaries on platforms like Wikipedia highlight the ongoing tension, and potential, for Liberia to become a model for responsible mining in Africa ^[2].

As the country expands into lithium, graphite, and rare earths, integrating ESG considerations early in project development will be key to ensuring long-term success, both economically and environmentally.

6. Regional Infrastructure & Logistics Upgrades

Infrastructure is the backbone of any competitive mining economy, and Liberia is making strategic investments to ensure that its export corridors can handle growing demand from both traditional and emerging mineral markets. The country’s renewed focus on logistics is centered on enhancing rail, port, and road systems, creating more efficient pathways from mine to market, particularly for landlocked operations in the interior.

At the heart of these efforts is the Yekepa–Buchanan railway, a 243-kilometer line currently operated by ArcelorMittal. As part of its $1.2 billion Phase II expansion, the company is investing heavily in the rehabilitation and modernization of this corridor. The upgraded railway will significantly increase capacity for transporting iron ore and other bulk commodities to the Buchanan deepwater port, which is also undergoing expansion to accommodate larger vessels and streamlined export logistics ^[5].

What makes this development even more transformative is the Liberian government’s stated intention to transition the railway to a multiuser system. Under this model, other mining companies, especially those involved in lithium, cobalt, and rare earth exploration, would gain access to the same transport infrastructure, reducing duplication and lowering logistical barriers for new entrants ^[7].

By opening up critical corridors to multiple operators, Liberia is enabling a shared infrastructure model that supports sector-wide growth, enhances cost-efficiency, and increases the commercial viability of smaller and mid-sized mining projects. These logistics upgrades not only serve mining interests but also benefit agriculture, manufacturing, and trade, boosting regional economic integration.

7. Economic Growth & Sector Impact

Mining continues to be the primary engine of Liberia’s economic growth, and this trend is only accelerating with the expansion of both traditional and critical minerals sectors. According to forecasts by Fitch Solutions, Liberia’s GDP is expected to grow by 5.0% to 5.8% in 2025, driven largely by the 40% projected year-on-year increase in iron ore production ^[8].

This mining-driven momentum is powering a range of economic spillovers:

• Increased fixed investment from both international mining companies and domestic suppliers
• Growth in export volumes, improving Liberia’s trade balance and foreign exchange reserves
• Job creation across the entire mining value chain, from exploration and extraction to transport, processing, and services

The mining sector’s diversification into lithium, nickel, cobalt, and rare earths will also create higher-value employment opportunities, especially in processing and downstream manufacturing. These activities demand technical expertise, promote technology transfer, and enable the development of Liberia’s human capital base, a vital element of long-term economic transformation.

Moreover, revenues from mining royalties, corporate taxes, and export duties are providing the government with the fiscal space needed to invest in education, healthcare, and infrastructure, thus reinforcing the cycle of growth and development.

As Liberia continues to develop its mining sector, these economic benefits will increasingly extend beyond mining itself, catalyzing broader industrialization and regional trade integration. With the right mix of policy, investment, and oversight, mining can serve not just as a growth driver, but as a gateway to inclusive, diversified development across the Liberian economy.

Why Liberia Belongs on Every Investor’s Radar

As global industries pivot toward secure, sustainable, and diversified mineral supply chains, Liberia is rapidly emerging as one of Africa’s most compelling destinations for mining investment in 2025. Its appeal lies in a unique combination of geological richness, policy reform, infrastructure development, and a growing commitment to responsible, inclusive resource management.

(a) A Proven Mining Foundation

Liberia’s long-standing success in iron ore and gold mining provides a stable foundation for future growth. Decades of extraction have produced not only millions of tonnes of exports but also an established ecosystem of trained labor, regulatory expertise, and industrial infrastructure. Operations by global giants like ArcelorMittal demonstrate the country’s ability to host large-scale, high-value mining projects with global supply chain links.

(b) Strategic Mineral Reserves for the Clean Energy Transition

The next phase of Liberia’s mining evolution is rooted in its newly identified deposits of lithium, cobalt, nickel, and rare earth elements, minerals essential to powering electric vehicles, renewable energy systems, and advanced manufacturing. These discoveries position Liberia as a future critical mineral supplier, with growing interest from international developers, OEMs, and strategic resource funds.

(c) Investor-Friendly Policy Reforms

Liberia’s government has introduced bold policy reforms to create a transparent, secure, and attractive investment climate. Updates to the Minerals and Mining Law offer greater clarity on licensing, fiscal stability, land tenure, and environmental responsibilities. The government is actively incentivizing local value addition, aiming to move Liberia up the value chain from raw exportation to onshore processing and beneficiation, a critical draw for investors focused on long-term returns and impact.

(d) Infrastructure That Connects Markets

Massive investments in transport and logistics infrastructure, including the modernization of the Yekepa–Buchanan railway and expansion of Buchanan Port, are drastically improving Liberia’s ability to move minerals efficiently and cost-effectively. Upcoming plans to transition the railway into a multiuser system will unlock even greater value by enabling emerging lithium, cobalt, and rare earth projects to access export routes without duplicating infrastructure.

(e) Commitment to ESG and Inclusive Development

With growing pressure on companies and countries to demonstrate Environmental, Social, and Governance (ESG) accountability, Liberia is showing promising strides. Environmental regulators have begun enforcing stricter compliance standards, while mining companies are investing in community development agreements, local employment, and public services. This maturing governance landscape is enhancing Liberia’s reputation as a responsible and reliable resource partner.

The Bottom Line

Liberia is no longer just a frontier market, it is a strategically positioned, resource-rich, policy-reforming country with the potential to shape Africa’s critical minerals future. For investors seeking scalable, sustainable mining opportunities with strong upside, Liberia belongs at the top of the radar in 2025.

Whether you’re a private equity firm, mining operator, infrastructure fund, or clean tech manufacturer, Liberia offers a compelling mix of geological potential, investment security, and long-term growth prospects in the heart of West Africa.

Ready to explore opportunities in one of Africa’s fastest-growing mining markets?

At BOH Infrastructure, we specialize in helping investors navigate Africa’s fast-evolving resource landscape. Whether you’re exploring early-stage exploration or evaluating advanced mining projects, our team provides tailored support to help you research, validate, and structure investments in Liberia’s mining sector. From regulatory due diligence and project risk assessments to facilitating local partnerships and accessing capital, we connect you with the insights and networks needed to make informed, strategic decisions. With deep regional expertise and a commitment to responsible investment, BOH is your trusted partner in unlocking value across Liberia’s emerging critical minerals economy.

Partner with BOH Infrastructure to unlock strategic opportunities in Liberia.

References.

1. International Monetary Fund, African Department. (2021). Liberia Poverty Reduction and Growth Strategy. https://www.elibrary.imf.org/view/journals/002/2021/010/article-A001-en.xml
2. Wikipedia. (n.d.). Mining industry of Liberia. Retrieved from https://en.wikipedia.org/wiki/Mining_industry_of_Liberia
3. Energy Capital & Power. (2025). Liberia’s Minister of Mines & Energy to Showcase Upstream Investment Opportunities at IAE 2025. https://energycapitalpower.com/liberia-discovers-critical-mineral-deposits-in-latest-survey/
4. AllAfrica. (2025). West Africa: Liberia Seeks Investment Opportunities At Mining Indaba 2025 Confab. https://allafrica.com/stories/202502110565.html
5. The Liberian Investigator. (2025, May). Liberia joins US and India as ArcelorMittal’s top global investment priority for 2025. https://liberianinvestigator.com/featured/arcelormittal-investment-liberia-2025-priority/
6. Reuters. (2024, August 29). Liberia closes China Union’s Bong Mines for violations, regulator says. https://www.reuters.com/markets/commodities/liberia-shuts-down-china-union-iron-ore-bong-mines-environmental-violations-2024-08-29/
7. Reddit – Liberia Mining Forum. (n.d.). Liberia Can’t Afford Another 25 Years of Rail Monopoly (and Squander More Opportunities). https://www.reddit.com/r/Liberia/comments/1ibr7j9/liberia_cant_afford_another_25_years_of_rail/
8. Fitch Solutions. (2024, November 13). Private Consumption and Mining Output Will Drive Liberian Economic Growth in 2024–2025. https://www.fitchsolutions.com/bmi/mining/private-consumption-and-mining-output-will-drive-liberian-economic-growth-2024-2025-13-11-2024