The country is thus uniquely positioned to become a low-cost and low-emissions producer of lithium-ion battery precursor materials and cells, says an African Development Bank report titled ‘Strengthening Africa’s Role in the Battery and Electric Vehicle Value Chain’.
A BloombergNEF study was commissioned to look into the feasibility of setting up Special Economic Zones to manufacture battery precursors in DRC and Zambia. It confirmed the project was technically feasible and financially viable, with an estimated total cost of $2.7 billion.
Lithium-ion batteries dominate the EV market and represent about 49% of the global rechargeable battery market. Many of the minerals needed to produce them, including cobalt, lithium, manganese, nickel and graphite are available in the Democratic Republic of Congo, Zambia, South Africa, Madagascar, Mozambique, Tanzania or Gabon among others.
The Kingdom of Morocco signed in June 2023 a $6.4billion agreement with Chinese battery manufacturer Gotion High-Tech Co, for the construction of a factory to manufacture EV batteries in Rabat-Salé-Kénitra region. It will have an annual capacity of 100 gigawatts.
It will have an annual capacity of 100 gigawatts. Gotion is one of the world’s 10 largest battery manufacturers and listed on both China’s Shenzhen Stock Exchange and on the Zurich Stock Exchange in Switzerland, with shareholders such as Volkswagen. This is where the Africa Investment Forum can play an important role.