UK Foreign Sec: Africa to Generate $6.8B from Battery Supply

UK Backs Africa's $6.8B Battery Ambitions

“The UK government has a clear mission to support global growth that is inclusive of people and planet, and...”

Africa's global battery ambitions: Expert insights on overcoming investment, infrastructure, and talent gaps.

Africa is poised to become a major player in the global battery supply chain, generating a whopping $6.8 billion annually and creating 3,500 jobs. This exciting development is attributed to the continent's rich reserves of critical battery raw materials, particularly cobalt, lithium, and nickel.

Benefits of Africa's Battery Supply Chain

Economic Growth: $6.8 billion in annual revenue

Job Creation: 3,500 new employment opportunities

Increased Investment: Attracting international investment and partnerships

Improved Trade: Enhancing intra-African trade and economic integration

The African Continental Free Trade Area (AfCFTA) is expected to play a significant role in unlocking the continent's battery potential. With the right investments and policies, Africa can become a hub for battery manufacturing, catering to the growing demand for electric vehicles and renewable energy solutions.

UK Foreign Secretary David Lammy has unveiled a groundbreaking report in Lagos, Nigeria, highlighting Africa's immense potential to tap into the global battery value chain. The report, titled “From Minerals to Manufacturing: Africa's Competitiveness in Global Battery Supply Chains,” reveals that the continent can generate a staggering $6.8 billion and create approximately 3,500 jobs through this sector.

Key Highlights of the Report:

Economic Growth: Africa's battery value chain can generate $6.8 billion annually

Job Creation: Approximately 3,500 jobs to be created in the sector

Partnership: The report was produced in collaboration with the Faraday Institution, a research body specializing in batteries and energy storage

Initiative: Part of the UK's manufacturing Africa program

Background on David Lammy:

As the UK's Foreign Secretary, David Lammy has been vocal about his vision for a modern, multicultural Britain that is proudly internationalist and committed to delivering for working people. His appointment as Foreign Secretary marks a significant milestone, making him the first person of his background to hold the position.

A recent report highlights Africa's potential to become a global battery manufacturing hub by 2030, surpassing other regions with the right investment and policies. Local refining of lithium, nickel, manganese, and copper could unlock this competitive edge.

Investing in high-quality refineries for these minerals could yield significant economic benefits, including an additional $6.8 billion in annual revenue and approximately 3,500 well-paid jobs within the battery supply chain.

Initial analysis identifies Tanzania and Morocco as potential battery production hubs, with costs competitive with Europe. Morocco could achieve production costs of $72 per kilowatt-hour (kWh), while Tanzania could lower costs to $68 per kWh, comparable to Europe's $68 per kWh.

Helen King, Director for Economic Development and Partnerships at the UK Foreign, Commonwealth and Development Office, emphasized Africa's potential: “Investors should give serious consideration to Africa's potential as a future manufacturer of batteries, not just a buyer.” King's statement underscores the continent's prospects for transitioning from a consumer to a producer of batteries.

“The UK government has a clear mission to support global growth that is inclusive of people and planet, and this sector presents real opportunity for African growth and jobs.

“We look forward to engaging with policymakers and investors on taking forward the outcomes of this report and doing the hard work to realise the opportunity it represents,” He said.

Aminu Umar-Sadiq, NSIA's Managing Director, stressed the importance of bridging the gap between conventional energy infrastructure and renewable energy solutions.

“The NSIA, through its subsidiary, 'RIPLE,' is piloting the development of an integrated battery manufacturing facility to bolster Nigeria's industrial base and support the nation's energy transition plan,” Umar -Sadiq said.

Faraday Institution CEO Martin Freer identified investment, infrastructure, and workforce development as critical hurdles African nations must clear to become significant contributors to the global battery industry.

“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,” Freer said.