A newly launched report by the British Deputy Excessive Fee in Nigeria has proven that with only one high-quality refinery for minerals similar to lithium, nickel, manganese and copper, Africa may generate an extra $6.8 billion in annual revenues and create roughly 3,500 good high quality jobs working within the battery provide chain.
It mentioned with the proper funding and coverage atmosphere, refining domestically extracted lithium, nickel, manganese and copper in Africa may very well be as much as 40 per cent extra aggressive than the remainder of the world by 2030.
The report titled “From Minerals to Manufacturing: Africa’s Competitiveness in World Battery Provide Chains,’ was undertaken by way of the UK’s Manufacturing Africa programme in partnership with the UK’s flagship analysis organisation on batteries and vitality storage, the Faraday Establishment, and divulges cost-competitive funding alternatives within the battery provide chain in Africa.
Based on the report, past mineral refining, preliminary evaluation means that international locations like Tanzania and Morocco may produce batteries which are cost-competitive with Europe beneath sure situations. For instance, Morocco may obtain manufacturing prices of $72/kWh and Tanzania at $68/kWh, in comparison with $68/kWh in Europe, the place manufacturing advantages from subsidies.
The report additionally estimates battery demand, identifies extra alternatives in battery packs and in battery meeting and recycling, maps the place corporations are working in battery worth chains throughout Africa and gives suggestions for policymakers and traders on how one can advance these initiatives.
The landmark report on the alternatives for Africa within the international battery worth chain was launched by the UK International Secretary, Rt Hon David Lammy MP, in Lagos on Monday.
The report additionally estimates battery demand, identifies extra alternatives in battery packs and in battery meeting and recycling, maps the place corporations are working in battery worth chains throughout Africa and gives suggestions for policymakers and traders on how one can advance these initiatives.
Director for Financial Growth and Partnerships on the UK International Commonwealth and Growth Workplace, Helen King, mentioned: “This report exhibits that traders ought to give critical consideration to Africa’s potential as a future producer of batteries, not only a purchaser.
“The UK authorities has a transparent mission to help international development that’s inclusive of individuals and planet, and this sector presents actual alternatives for African development and jobs. We stay up for partaking with coverage makers and traders on taking ahead the outcomes of this report and doing the exhausting work to grasp the chance it represents.”
The CEO for the Faraday Establishment, Professor Martin Freer, mentioned given the abundance of essential pure minerals in Africa, “African nations may play a major position within the international battery provide chain if they may overcome funding, infrastructure and workforce challenges.”
He mentioned the report comprises a wealth of knowledge and evaluation on the topic that can be helpful to a wide range of stakeholders together with potential traders in initiatives in different components of the battery worth chain past mining.
In her comment, the Manufacturing Africa programme, Nigeria Nation Lead, Kemi
Onabanjo mentioned the report confirmed that funding in battery manufacturing in Africa generally is a win-win, creating jobs and development domestically whereas driving down manufacturing prices and supporting international local weather objectives.
She mentioned: “Translating Africa’s abundance of essential mineral wealth into jobs and development means African economies capturing a larger share of the manufacturing course of as soon as minerals are out of the bottom. The UK-Help funded Manufacturing Africa mission does precisely this, and we’ve got already mobilised £1.2bn in FDI for native manufacturing and created 95,000 jobs throughout the continent by way of comparable help.”
