The continent has great potential in the global electric vehicle (EV) battery value chain. But is its automotive industry ready to lead a future where African-made batteries power locally-assembled EVs?



For the first time in its 31-year history, the Investing in African Mining Indaba saw the automotive industry take center stage. Held early this year in Cape Town, the conference reflected a crucial shift– Africa is no longer just a supplier of minerals but a potential powerhouse for the global electric vehicle (EV) battery revolution.



The key question is: can Africa’s mining and automotive industries drive downstream battery manufacturing instead of merely exporting raw minerals to global markets like China, the United States, and Europe? Or will the continent remain locked in the historical cycle of resource extraction, watching others reap the rewards of a trillion-dollar industry?



From Extraction to Empowerment



Picture a miner in the Democratic Republic of the Congo, for example, extracting cobalt, a critical component of lithium-ion batteries, unaware that his work fuels EVs in California and Berlin–yet not a single battery is made in Africa. Now, contrast that with a future where an African-made battery powers a locally assembled EV, marking a fundamental shift in the continent’s economic destiny.



Almost all of Africa’s cobalt, manganese, lithium and graphite are exported, leaving the continent at the bottom of the value chain while other regions capitalise on high-value battery production.



Madelein Todd, Marketing Executive at Manganese Metal Co and a key advocate for the battery raw materials market, underscores this dilemma to FORBES AFRICA. “Africa is incredibly rich in mineral resources, yet the continent faces an economic paradox–low GDP per capita results in weak domestic demand for raw materials. In a thriving economy, industrialization fuels demand, but in Africa’s case, there’s a missing economic pull, making strong government support essential.”



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“China’s success was no accident. It took years of patient investment and strategic government backing to build an industry that now leads the world. The key lesson for Africa is that success in advanced manufacturing doesn’t happen overnight.”
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The challenge lies in the vast quantities of raw minerals being exported with minimal local processing. Todd emphasizes that while domestic consumption may be low, beneficiation would create significant value. “Beneficiation is impossible without strong policy support. In industrialized economies, market demand regulates production, competition controls costs and the most efficient producers thrive. However, in Africa, weak infrastructure–especially unreliable power supply–limits our ability to scale up local processing. South Africa’s struggles with power costs have already made it uncompetitive in ferrochrome, ferromanganese and steel production,” adds Todd.



Strengthening power generation and industrial capacity must be a top priority, or Africa risks remaining a mere supplier rather than a key driver in the global battery supply chain.



The rise of EVs presents a rare window of opportunity. As the world transitions to electric mobility, Africa’s automotive industry can become a catalyst for local battery production. Countries like South Africa, Morocco, and Egypt–home to growing automotive assembly hubs–could integrate battery manufacturing into their supply chains.



Morocco has already demonstrated its ability to scale automotive production, positioning itself as a key player in vehicle assembly. Could this success extend into battery-making? Could South Africa’s automotive hubs in its provinces Gauteng (Rosslyn and Tshwane), the Eastern Cape and KwaZulu-Natal follow suit?



Todd believes South Africa’s structured export credits, which have made vehicle production competitive, offer a roadmap for industrial strategy.



“South Africa’s automotive industry thrives due to well-structured export incentives. Nearly 40-50% of locally produced vehicles are exported, thanks to negotiated tariffs and strategic government support. If the same approach were applied to battery production, Africa could position itself as a global supplier.”



Lessons from Indonesia and China



Could Africa replicate the success stories of Indonesia and China?



Indonesia made a bold move by banning raw nickel exports in 2014 and again in 2020, forcing global companies to invest in local battery manufacturing. Todd, however, warns that such policies require careful execution.



“Indonesia succeeded because it controls the largest nickel reserves, and competing producers face high costs. But in Africa, minerals like manganese are more widely distributed–South Africa may be the largest producer, but it faces competition from Gabon, Ghana, Australia and Brazil. A unilateral export ban could backfire by driving up prices and incentivising competitors to scale up.”



China’s dominance in battery production, on the other hand, was built on decades of government incentives, research funding and long-term industrial policy. What can Africa learn from this model?



“China’s success was no accident. It took years of patient investment and strategic government backing to build an industry that now leads the world. The key lesson for Africa is that success in advanced manufacturing doesn’t happen overnight. Governments must commit to sustained industrial support, including R&amp;D incentives and infrastructure development.”



Who Will Fund the Shift?



A transition of this scale requires a massive investment. Organizations like the Automotive Industry Transformation Fund have already committed R500 million ($27.7 million) to strategic initiatives in South Africa, including mineral beneficiation, charging infrastructure, and supply chain development.



But this is just the beginning. Imagine what could be achieved if institutions like the African Development Bank, the Industrial Development Corporation, the European Development Fund, and private-sector investors aligned their resources to finance local battery plants.



The African Association of Automotive Manufacturers is working to lobby governments to industrialize the sector through the African Continental Free Trade Area. But what’s missing?



What’s Holding Africa Back?



Infrastructure gaps–unreliable energy supply, limited logistics networks, and manufacturing constraints–remain major roadblocks. There’s also the question of geopolitics. In a world where resource security is becoming a central issue, will foreign powers resist Africa’s move up the value chain?



Todd stresses that long-term policy stability and global partnerships will be crucial.



“Battery manufacturing in Africa won’t succeed unless it’s tied to large, negotiated export agreements. A single battery plant needs a production capacity of at least 30 GWh to be viable. That scale requires partnerships with established players–Chinese, South Korean, or Japanese firms–who have the expertise and capital to navigate this complex industry. More importantly, investors need long-term policy certainty. Without clear government commitments spanning 15-20 years, the razor-thin margins in battery production make investment too risky.”



Africa at a Crossroads



The defining question of this decade is whether Africa will remain a supplier of raw materials or rise to become a global force in battery manufacturing.



“Europe produces over 70% of the battery cells used in its EVs, but its supply chain remains dependent on Asia for critical battery materials like cathodes and anodes. This creates a vulnerability –and an opportunity for Africa. By developing local capacity for battery materials, Africa could become a strategic alternative supplier, reducing global reliance on Asia and strengthening supply chain resilience,” Todd concludes.

Category: Automobiles

Turn On The Battery: Africa’s EV Revolution And What’s Holding It Back

FORBES AFRICA SOCIAL MEDIA

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