Lagos, 4th November - UK Foreign Secretary, The Rt Hon David Lammy MP, today, launched a landmark report at a growth and renewable energy reception in Lagos on the opportunities for Africa in the global battery value chain.
The report titled ‘From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains’, was undertaken through the UK’s Manufacturing Africa programme in partnership with the UK’s flagship research organisation on batteries and energy storage, the Faraday Institution, and reveals cost-competitive investment opportunities in the battery supply chain in Africa.
Key findings indicate that, with the right investment and policy environment, refining locally extracted lithium, nickel, manganese and copper in Africa could be up to 40% more competitive than the rest of the world by 2030. With just one high-quality refinery for each of these minerals, Africa could generate an additional USD 6.8 billion in annual revenues and create approximately 3,500 good quality jobs operating in the battery supply chain.
Beyond mineral refining, initial analysis suggests that countries like Tanzania and Morocco could produce batteries that are cost-competitive with Europe under certain conditions. For example, Morocco could achieve production costs of $72/kWh and Tanzania at $68/kWh, compared to $68/kWh in Europe, were production benefits from subsidies.
The report also estimates battery demand, identifies additional opportunities in battery packs and in battery assembly and recycling, maps where companies are operating in battery value chains across Africa and provides recommendations for policymakers and investors on how to advance these initiatives.
This report follows the Foreign Secretary’s speech at Kew Gardens on 17th September 2024, where he announced his intention to work with partners to create a Global Clean Power Alliance. At the event in Lagos, the Foreign Secretary met with investors, development partners and companies in the clean energy sector, including UK smart-meter firm SteamaCo, and UK e-waste firm Hinckley Recycling, with whom he assembled a second life battery. Both firms are invested in Nigeria.
Director for Economic Development and Partnerships at the UK Foreign Commonwealth and Development Office, Helen King, said:
“This report shows that investors should give serious consideration to Africa’s potential as a future manufacturer of batteries, not just a buyer. The UK Government has a clear mission to support global growth that is inclusive of people and planet, and this sector presents real opportunity for African growth and jobs. We look forward to engaging with policy makers and investors on taking forward the outcomes of this report and doing the hard work to realise the opportunity it represents.”
The Managing Director of Nigeria’s Sovereign Investment Authority, Aminu Umar-Saqid, said:
“With Nigeria's growing demand for electricity, bridging the gap between the traditional energy infrastructure and renewable energy solutions, enhanced by energy storage, is as vital as localising the supply chain. The NSIA, through its subsidiary - RIPLE - is piloting the development of an integrated battery manufacturing facility to bolster Nigeria's industrial base and support the nation’s Energy Transition Plan. This report, sponsored by the FCDO under its Manufacturing Africa Programme has been instrumental in calibrating our strategy thus providing a solid base for the development of our initiative.”
The CEO for the Faraday Institution, Professor Martin Freer, said:
“Given the abundance of critical natural minerals in Africa, African nations could play a significant role in the global battery supply chain if they could overcome investment, infrastructure and workforce challenges. The report contains a wealth of information and analysis on the subject that will be valuable to a variety of stakeholders including potential investors in projects in other parts of the battery value chain beyond mining.”
Manufacturing Africa programme Nigeria Country Lead, Kemi Onabanjo, said:
“This report shows that investment in battery manufacturing in Africa can be a win-win, creating jobs and growth locally while driving down production costs and supporting global climate goals. Translating Africa’s abundance of critical mineral wealth into jobs and growth means African economies capturing a greater share of the manufacturing process once minerals are out of the ground. The UK-Aid funded Manufacturing Africa project does exactly this, and we have already mobilised £1.2bn in FDI for local manufacturing and created 95,000 jobs across the continent through similar support.”
Media Contact:
The Manufacturing Africa Programme
Note to Editors:
- In his first major foreign policy speech at Kew Gardens, David Lammy has made clear that action on climate is action on our security, our prosperity and our future. The speech can be found here.
- The report titled ‘From Minerals to Manufacturing: Africa’s Competitiveness in Global Battery Supply Chains can be found here.
- Supporting analysis and report research can be found in the annexure here.
This report was commissioned by the UK-Government funded programme Manufacturing Africa in partnership with the Faraday Institution, which also received UK Government funding via the Transforming Energy Access platform (part of the Ayrton Fund). The Faraday Institution is leading the Ayrton Challenge on Energy Storage.
About Manufacturing Africa
Manufacturing Africa is a UK government-funded programme that aims to attract £1.2 billion of foreign direct investment into African manufacturing and create 90,000 jobs before 2026. Manufacturing Africa provides manufacturing companies and investors with fully funded transaction advisory services to fast-track investment and delivers technical assistance to help transform subsectors or unblock challenges in the enabling environment.
About the Faraday Institution
The Faraday Institution is the UK’s independent institute for electrochemical energy storage research, skills development, market analysis, and early-stage commercialisation. Bringing together expertise from universities and industry, the Faraday Institution endeavours to make the UK the go-to place for the research and development of new electrical storage technologies for both the automotive and wider relevant sectors. Headquartered at the Harwell Science and Innovation Campus, the Faraday Institution is a registered charity with an independent board of trustees, and a delivery partner for the Faraday Battery Challenge.
About the Ayrton Fund
The Ayrton Fund is a commitment by the UK Government to spend up to £1 billion of Official Development Assistance (ODA) on the research, development and demonstration (RD&D) of clean energy technologies and business models for developing countries over five years (2021-2026). This includes the partnerships and associated skills needed to deliver Sustainable Development Goals 7 and 13. The Ayrton Fund is managed and delivered jointly between the FCDO, DESNZ and DSIT, via a portfolio on ongoing, new, and scaled-up clean energy innovation programmes.
About the Transforming Energy Access platform
Transforming Energy Access (TEA) is the flagship FCDO research and innovation programme supporting early-stage testing and scale-up of innovative technologies and business models that accelerate access to affordable, clean energy for poor households, enterprises, and social institutions in developing countries across sub-Saharan Africa, South Asia, and the Indo-Pacific. This includes support to innovations across the three Ayrton Fund themes of clean supply, super-efficient demand and smart delivery, as well as integration of solutions across the three. Ayrton Fund support to the Faraday Institution for its leadership role on the Ayrton Challenge on Energy Storage is delivered via TEA.