New report highlights Africa's potential in the global battery supply chain #rwanda #RwOT

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The report, titled "From Minerals to Manufacturing: Africa's Competitiveness in Global Battery Supply Chains," was conducted through the UK's Manufacturing Africa programme in collaboration with the Faraday Institution, the UK's leading research body on batteries and energy storage.

It presents cost-competitive investment opportunities for the battery supply chain in Africa.

Key findings suggest that, with targeted investment and supportive policy frameworks, refining lithium, nickel, manganese, and copper sourced locally in Africa could be up to 40% more competitive than global counterparts by 2030.

With just one high-quality refinery for each of these minerals, Africa could generate an additional USD 6.8 billion in annual revenue and create approximately 3,500 well-paying jobs within the battery supply chain.

In addition to mineral refining, preliminary analysis indicates that countries such as Tanzania and Morocco could potentially manufacture batteries at costs competitive with Europe under certain conditions. For instance, production costs could reach $72/kWh in Morocco and $68/kWh in Tanzania, aligning closely with Europe's $68/kWh production cost, which benefits from subsidies.

The report also projects battery demand, highlights further opportunities in battery packs, battery assembly, and recycling, and outlines the current landscape of companies engaged in battery value chains across Africa. It offers strategic recommendations for policymakers and investors to drive these opportunities forward.

This report follows the Foreign Secretary's address at Kew Gardens on September 17, 2024, where he shared plans to collaborate with partners to establish a Global Clean Power Alliance.

During the Lagos event, the Foreign Secretary engaged with investors, development partners, and clean energy firms, including UK-based smart meter company SteamaCo and e-waste management firm Hinckley Recycling.

Both firms are active in Nigeria, where they assembled a second-life battery as a demonstration of their commitment to local sustainability initiatives.

Helen King, Director for Economic Development and Partnerships at the UK Foreign Commonwealth and Development Office, underscored that the report encourages investors to view Africa as a prospective battery manufacturer, not merely a consumer.

She reaffirmed the UK Government's commitment to fostering inclusive, sustainable global growth, recognizing that this sector holds significant potential for African job creation and economic development.

'We look forward to engaging with policy makers and investors on taking forward the outcomes of this report and doing the hard work to realize the opportunity it represents,' she emphasized.

Aminu Umar-Saqid, Managing Director of Nigeria's Sovereign Investment Authority, expressed that with Nigeria's increasing energy needs, integrating renewable solutions and energy storage into local infrastructure is crucial to bridging the energy gap.

'This report, sponsored by the FCDO under its Manufacturing Africa Programme has been instrumental in calibrating our strategy thus providing a solid base for the development of our initiative,' he stated.

Professor Martin Freer, CEO of the Faraday Institution, pointed out that Africa's abundance of essential minerals could enable the continent to play a transformative role in the global battery supply chain if it can address the challenges of investment, infrastructure, and workforce capacity.

'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,' he noted.

Kemi Onabanjo, Nigeria Country Lead for the Manufacturing Africa programme, welcomed the report, stressing that turning Africa's rich mineral resources into jobs and economic growth requires that African economies capture a larger share of the manufacturing process once minerals are out of the ground.

Lithium is one of high value precious stones used in the production of batteries for electronic devices such as phones, computers, and cameras. It is available in African countries including Rwanda.

Théophile Niyitegeka



Source : https://en.igihe.com/news/article/new-report-reveals-africa-s-potential-in-the-global-battery-supply-chain

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