Africa could refine crucial minerals like lithium, nickel, manganese, and copper at up to 40 per cent lower costs than competitors worldwide by 2030, according to a new study.
This cost advantage, the findings show, could present an opportunity for the continent to capture a greater share of the global battery and renewable energy markets, playing back into the global supply chains as the world moves to green energy.
The conclusions are drawn in a study conducted by the UK’s Manufacturing Africa programme in partnership with the Faraday Institution, a research entity into energy storage.
Titled, From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains, it reveals that Africa stands at cost-competitive advantage because it is also a source of a big share of the crucial minerals.
Africa holds some of the world’s largest reserves of lithium, cobalt, graphite, and nickel, all crucial in lithium-ion battery production.
The Democratic Republic of Congo (DRC) is an essential supplier. It provides nearly 70 per cent of the world’s cobalt, a useful mineral in making electronic chips.
Cobalt, along with lithium mostly from Zimbabwe and Namibia, means Africa is a linchpin in the global battery industry. Yet, Africa’s role has traditionally been limited to extraction, with most minerals being exported for processing elsewhere.
This means African countries often miss out on higher-value manufacturing opportunities. Shifting this dynamic — by bringing processing, refining, and even battery manufacturing closer to home — could unleash substantial economic growth, create jobs, and add value to Africa’s natural resources.
The study underscores the requirement of targeted investments and supportive policies that support local production, and a skilled workforce.
“Even establishing a single high-quality refinery for each of these minerals could generate nearly $7 billion in annual revenues and create 3,500 skilled jobs within the supply chain,” says the report.
Beyond mineral refining, the report reveals promising prospects for full-scale battery production in Africa, and highlights countries like Tanzania and Morocco, where battery manufacturing could become cost-competitive with Europe if subsidy-backed support is introduced.
“With potential production costs as low as $68 per kilowatt-hour, Africa could manufacture batteries on par with European prices, driving not only local growth but also enhancing the continent's position in global energy markets,” it says.
Industry leaders have voiced their support for this vision. Helen King, the Director of Economic Development at the UK Foreign Commonwealth and Development Office, noted that Africa’s potential in battery manufacturing presents a huge opportunity.
“Investors should give serious consideration to Africa’s potential as a future manufacturer of batteries, not just a buyer,” she observed after the report was published last week.
“Given the abundance of critical natural minerals in Africa, African nations could play a significant role in the global battery supply chain if they could overcome investment, infrastructure and workforce challenges,” David Lammy, UK’s Foreign Secretary had said earlier.
