By Faridat Salifu
Africa may soon start refining minerals and producing batteries for the global market.
The UK Foreign Secretary, David Lammy, dropped this hint in Lagos, Tuesday, November 5 when he unveiled a report that outlined the continent’s potential for major participation in the two ventures for the global market.
The report, titled “From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains,” was compiled by the UK’s Manufacturing Africa programme and the Faraday Institution, the UK’s leading research organization for batteries and energy storage.
According to the report, refining minerals such as lithium, nickel, manganese and copper directly in Africa could become achieve 40 percent more cost-competitive than other parts of the world by 2030.
This achievement, the report said, could generate an estimated USD 6.8 billion annually and create approximately 3,500 high-quality jobs within Africa’s battery supply chain.
The study further highlights the potential for battery production in countries like Morocco and Tanzania, where production costs could rival those in Europe, especially with Morocco’s estimated costs at $72/kWh and Tanzania’s at $68/kWh, comparable to Europe’s $68/kWh production with subsidies.
The report includes an analysis of expected battery demand, opportunities in battery assembly and recycling, and recommendations for African policymakers and global investors.
Key stakeholders at the Lagos event, including private investors and firms such as UK-based smart-meter firm SteamaCo and e-waste company, Hinckley Recycling, engaged in discussions on Africa’s promising role in sustainable energy solutions.
Both companies are already actively involved in Nigeria’s clean energy sector, with Lammy and representatives participating in a demonstration to assemble a second-life battery.
Helen King, Director for Economic Development and Partnerships at the UK’s Foreign Commonwealth and Development Office (FCDO), noted, “This report highlights Africa’s potential to emerge as a significant battery producer, not just an end consumer. The UK Government is committed to fostering inclusive growth worldwide, and this sector offers genuine opportunities for African growth and job creation.”
The report lays the groundwork for African economies to capture a greater portion of the value chain.
Kemi Onabanjo, Manufacturing Africa’s Nigeria Country Lead, said, “Investment in Africa’s battery manufacturing sector is a win-win, creating local jobs and economic growth while advancing global climate goals.”
Nigeria’s Sovereign Investment Authority (NSIA), represented by Managing Director Aminu Umar-Saqid, echoed these sentiments, highlighting the NSIA’s pilot project for a local battery manufacturing facility under its RIPLE subsidiary.
Umar-Saqid stated, “With Nigeria’s increasing electricity demand, bridging traditional energy infrastructure with renewable solutions, including energy storage, is critical.”
Professor Martin Freer, CEO of the Faraday Institution, added that Africa’s abundance of critical minerals could position it as a significant player in the global battery supply chain. “This report offers essential insights that will benefit stakeholders and investors considering projects beyond mining.”
The Foreign Secretary’s initiative builds on his September announcement of the Global Clean Power Alliance, reinforcing the UK’s commitment to collaborative efforts in sustainable energy and economic growth across Africa.