Demand for batteries in Africa over the next decade is largely expected to both grow significantly and be supported by the continent’s vast renewable energy potential, which includes abundant solar and wind resources.
This surge in growth will also be driven by the electrification of the transport sector, including the growing adoption of electric vehicles.
However, knowledge-as-a-service data and research platform Evidencity research operations director Shelton Mollentze tells Mining Weekly that, for Africa to take advantage of the potential in the battery market, it must develop key capabilities and overcome significant challenges.
Firstly, he suggests that the continent should “invest heavily in developing its battery manufacturing capabilities, including building a skilled workforce, investing in research and development, and establishing strong partnerships with battery technology companies”.
Secondly, he adds, Africa must address challenges in the business environment, including improving governance and reducing corruption, strengthening property rights and improving access to finance for small and medium-sized enterprises.
Mollentze notes that the interventions within the business environment must, ultimately, address structural challenges in energy access, including expanding access to electricity, improving energy efficiency and developing a robust renewable energy industry.
“Africa must also develop a strong regulatory framework that supports the growth of the battery industry while ensuring that it operates in a sustainable and socially responsible manner. Africa must also develop strong international partnerships to support the growth of its battery industry,” he says.
Developing effective policies is critical to advancing development and projects in Africa in the battery metals space, considering that policies can be used as incentives or initiatives to attract investment, promote innovation and support the growth of the battery metals industry.
“Creating a conducive investment climate, promoting local content, developing infrastructure, supporting research and development, and ensuring environmental and social sustainability are key considerations in the development of policies in the battery metals space in Africa,” Mollentze says.
He notes that this will require a multi-stakeholder approach that involves government, industry, academia and civil society.
He laments the issue of modern slavery in countries such as the Democratic Republic of Congo, calling it a serious concern that “must be addressed to ensure the ethical and sustainable development of the battery and critical minerals industry”.
Increasing transparency, establishing due diligence mechanisms and promoting responsible sourcing practices are some of the ways to work around this issue, he suggests.
“Addressing this issue is crucial to ensure that the growth of the battery industry in Africa is sustainable and socially responsible.”
Overall, Mollentze says that “by addressing key challenges and developing key capabilities, Africa can take advantage of the potential of the battery market, contributing to the growth of its economy and the wellbeing of its citizens”.