Africa to generate $6.8bn annually with refineries for lithium, nickel, others — Report
A newly released report by the British Deputy High Commission in Nigeria has shown that with just one high-quality refinery for minerals such as lithium, nickel, manganese and copper, Africa could generate an additional $6.8 billion in annual revenues and create approximately 3,500 good quality jobs operating in the battery supply chain. It said with the […]
british deputy high commission in nigeria
A newly released report by the British Deputy High Commission in Nigeria has shown that with just one high-quality refinery for minerals such as lithium, nickel, manganese and copper, Africa could generate an additional $6.8 billion in annual revenues and create approximately 3,500 good quality jobs operating in the battery supply chain.
It said with the right investment and policy environment, refining locally extracted lithium, nickel, manganese and copper in Africa could be up to 40 per cent more competitive than the rest of the world by 2030.
The report titled “From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains,’ was undertaken through the UK’s Manufacturing Africa programme in partnership with the UK’s flagship research organisation on batteries and energy storage, the Faraday Institution, and reveals cost-competitive investment opportunities in the battery supply chain in Africa.
According to the report, beyond mineral refining, initial analysis suggests that countries like Tanzania and Morocco could produce batteries that are cost-competitive with Europe under certain conditions. For example, Morocco could achieve production costs of $72/kWh and Tanzania at $68/kWh, compared to $68/kWh in Europe, where production benefits from subsidies.
The report also estimates battery demand, identifies additional opportunities in battery packs and in battery assembly and recycling, maps where companies are operating in battery value chains across Africa and provides recommendations for policymakers and investors on how to advance these initiatives.
The landmark report on the opportunities for Africa in the global battery value chain was launched by the UK Foreign Secretary, Rt Hon David Lammy MP, in Lagos on Monday.
The report also estimates battery demand, identifies additional opportunities in battery packs and in battery assembly and recycling, maps where companies are operating in battery value chains across Africa and provides recommendations for policymakers and investors on how to advance these initiatives.
Director for Economic Development and Partnerships at the UK Foreign Commonwealth and Development Office, Helen King, said: “This report shows that investors should give serious consideration to Africa’s potential as a future manufacturer of batteries, not just a buyer.
“The UK government has a clear mission to support global growth that is inclusive of people and planet, and this sector presents real opportunities for African growth and jobs. We look forward to engaging with policy makers and investors on taking forward the outcomes of this report and doing the hard work to realise the opportunity it represents.”
The CEO for the Faraday Institution, Professor Martin Freer, said 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.”
He said the report contains a wealth of information and analysis on the subject that will be valuable to a variety of stakeholders including potential investors in projects in other parts of the battery value chain beyond mining.
In her remark, the Manufacturing Africa programme, Nigeria Country Lead, Kemi
Onabanjo said the report showed that investment in battery manufacturing in Africa can be a win-win, creating jobs and growth locally while driving down production costs and supporting global climate goals.
She said: “Translating Africa’s abundance of critical mineral wealth into jobs and growth means African economies capturing a greater share of the manufacturing process once minerals are out of the ground. The UK-Aid funded Manufacturing Africa project does exactly this, and we have already mobilised £1.2bn in FDI for local manufacturing and created 95,000 jobs across the continent through similar support.”