AfDB tasks Africa to invest in building facilities for lithium-ion batteries

Dr. Akinwumi Adesina, the President of the African Development Bank Group, articulated that establishing precursor facilities for lithium-ion batteries within Africa will incur costs threefold lower than in other regions globally.

On December 1st, Dr. Adesina conveyed this message at the African Union (AU) Industrialization Summit held in Niamey, Niger Republic.

Potentials of lithium: 

He further mentioned that Africa possesses the capability to take the lead in the electric vehicle (EV) industry. This is attributed to the demand for lithium-ion batteries in the manufacturing of electric vehicles.

“The future of electric vehicles globally hinges on Africa, given its extensive reserves of rare mineral resources, including lithium-ion, cobalt, nickel, and copper. The electric vehicle market is projected to reach $7 trillion by 2030 and $46 trillion by 2050.”

Adesina proceeded, asserting that “Africa is rich in natural resources, oil, gas, minerals, and metals, along with a vast blue economy that urgently requires industrialization.”
Investment requirements: President Paul Kagame of Rwanda supported Dr. Adesina’s comments about the urgent need for investments in infrastructure and energy. He remarked:

“The rate of industrialization in Africa remains insufficient to meet the continent’s development objectives under Agenda 2063. We must allocate a greater portion of our national budgets to industrial strategy, in addition to substantially enhancing energy and infrastructure capabilities.”

The International Energy Agency (IEA) noted that copper, silicon, lithium, and other rare earth minerals are crucial for the evolution of future global energy systems in its October 2022 World Energy Outlook. The outlook suggests that lithium-ion batteries represent the fastest-growing storage technology worldwide, establishing lithium as vital for forthcoming electrical systems.

The IEA report additionally underscored the necessity for policymakers to focus more on the importance of these minerals for a secure and sustainable energy transition, pointing out that increasing mineral prices and unstable supply chains, which may be affected by geopolitical occurrences, should be perceived as cautionary indicators.