The recent installation of the organizers of the Congolese Council of the Battery by the President of the Republic comes amid a significant drop in the price of Cobalt, a coveted metal used in the production of batteries.
Between March and May 2022, Cobalt was listed at USD 82,000 per tonne, but by the end of February 2023, its price had dropped to below USD 35,000 per tonne.
This drop can be attributed to three reasons: a significant drop in demand for batteries due to the pandemic, an increase in the supply of Cobalt from small producers, and battery manufacturers’ efforts to reduce the share of Cobalt in their production in favor of other materials.
While demand for batteries may rise again, especially with the increase in sales of electric vehicles, Congo may not benefit substantially unless it changes its strategy.
Currently, Congo is a simple supplier of raw materials subject to market fluctuations. As car manufacturers reduce their need for Cobalt, Congo must find ways to capture more value from the Cobalt value chain. This can be done by focusing on research and development to develop a new generation of batteries that include Cobalt and other metals abundant in Congo.
Rather than rushing to set up a factory that may quickly lose competitiveness, Congo should tap into its human capital and develop innovative products to create added value and jobs, influencing the demand for its strategic raw materials.
With the emergence of new battery technologies that use cheap raw materials like Aluminum and Sodium, Congo must adapt to stay competitive. It’s never too late to do the right thing.
