TURN ON THE BATTERY

THE CONTINENT HAS GREAT POTENTIAL IN THE GLOBAL ELECTRIC VEHICLE (EV) BATTERY VALUE CHAIN. BUT IS ITS AUTOMOTIVE INDUSTRY READY TO LEAD A FUTURE WHERE AFRICAN-MADE BATTERIES POWER LOCALLY-ASSEMBLED EVS?

- Edward Moleke Makwana

For the first time in its 31-year history, the Investing in African Mining Indaba saw the automotive industry take center stage. Held early this year in Cape Town, the conference reflected a crucial shift-Africa is no longer just a supplier of minerals but a potential powerhouse for the global electric vehicle (EV) battery revolution.

The key question is: can Africa's mining and automotive industries drive downstream battery manufacturing instead of merely exporting raw minerals to global markets like China, the United States, and Europe? Or will the continent remain locked in the historical cycle of resource extraction, watching others reap the rewards of a trillion-dollar industry?

From Extraction to Empowerment

Picture a miner in the Democratic Republic of the Congo, for example, extracting cobalt, a critical component of lithium-ion batteries, unaware that his work fuels EVs in California and Berlin-yet not a single battery is made in Africa. Now, contrast that with a future where an African-made battery powers a locally assembled EV, marking a fundamental shift in the continent's economic destiny.

Almost all of Africa's cobalt, manganese, lithium and graphite are exported, leaving the continent at the bottom of the value chain while other regions capitalize on high-value battery production.

Madelein Todd, Marketing Executive at Manganese Metal Co and a key advocate for the battery raw materials market, underscores this dilemma to FORBES AFRICA.

“Africa is incredibly rich in mineral resources, yet the continent faces an economic paradox-low GDP per capita results in weak domestic demand for raw materials. In a thriving economy, industrialization fuels demand, but in Africa's case, there's a missing economic pull, making strong government support essential.”