The global transition to a low-carbon economy has increased the demand for minerals that are essential for the production of batteries and electric vehicles (EVs). These minerals include cobalt, copper, graphite, lithium, manganese, nickel and platinum group metals (PGMs). Africa is richly endowed with these minerals and has the potential to become a major player in the global battery metals value chain.
However, to realise this potential, Africa needs to adopt a strategic approach that leverages its mineral resources for industrial development and economic diversification. This means moving beyond the extraction and export of raw materials and investing in downstream activities such as refining, processing, manufacturing and recycling. By doing so, Africa can capture more value from its mineral wealth, create jobs, enhance skills, foster innovation and increase its competitiveness in the global market.
According to a report by Mining Weekly, African countries should build a battery metals value chain to capitalise on its mineral resources1. The report states that African Minerals Development Center interim director Marit Kitaw said the battery and EV initiative was a huge opportunity for Africa, which had triggered a huge surge of investment coming into Africa1.
Africa accounts for over 40% of global reserves of cobalt, manganese and platinum – key minerals for batteries and hydrogen technologies2. South Africa, Democratic Republic of the Congo and Mozambique have a significant share of global production today, but many other countries may hold undiscovered deposits2.
Some of the challenges that Africa faces in developing its battery metals value chain include inadequate infrastructure, policy uncertainty, environmental and social risks, limited access to finance and technology, and weak regional integration. To overcome these challenges, Africa needs to adopt a holistic and collaborative approach that involves all stakeholders, including governments, private sector, civil society, development partners and regional organisations.
Some of the opportunities that Africa can seize in developing its battery metals value chain include leveraging the African Continental Free Trade Area (AfCFTA) to facilitate regional trade and integration, promoting local content and beneficiation policies to encourage domestic value addition, establishing special economic zones (SEZs) and industrial parks to attract investment and innovation, enhancing environmental and social standards to ensure sustainability and inclusiveness, and fostering partnerships and cooperation with other regions and countries to access markets and technology.
By building a battery metals value chain in Africa , the continent can not only contribute to the global efforts to combat climate change and achieve the Sustainable Development Goals (SDGs), but also enhance its own economic development and social well-being.
