African countries could refine materials for lithium battery production and export to the US and EU. Refining could be in countries that are currently mining raw materials required for battery cell production or have a plan to start by 2030. These include: 4. Presence of local battery demand or assembly 5. Presence of required talent 6.
Context Battery packs can be assembled in African countries by importing cells and components (e.g., BMS, sensors, inverters) and tailoring battery modules to customer needs. Setting up a battery assembly facility (~USD 2-5 million) to produce ~10 GWh annually could meet internal LFP battery cell demand (~7 GWh by 2030).
The required capital expenditure ranges from USD 0.5-1.5 billion. African countries could refine materials for lithium battery production and export to the US and EU. Refining could be in countries that are currently mining raw materials required for battery cell production or have a plan to start by 2030. These include: 4.
A gigafactory requires a capex of ~USD 1 bn to produce 10-15 GWh batteries per year; African countries could produce LFP battery cells and export to the EU market. Countries that could produce battery cells cost competitively (e.g., Morocco, Tanzania).
Regionalizing the value chain: The 2021 Africa Continental Free Trade Agreement (AfCFTA) offers a unique opportunity for African countries to collaborate across the value chain, localizing production and enhancing cost competitiveness. Government Support: African governments are implementing policies to support the battery value chain.
1. May include interim storage of sorted and dismantled parts (warehousing) for pickup by transport and logistics provider Note: There is currently insufficient accessible battery waste in Africa to make it profitable for a company to build a large battery recycling plant.
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