Moving to greener sources of energy and reaching the net-zero goals set by governments around the world means more demand for key battery metals such as lithium.
In the past few years, the race to secure a steady and quality supply of lithium has heated up. The COVID-19 pandemic, paired with other factors such as the Russia-Ukraine war, revealed the vulnerabilities of the lithium supply chain and woke the western world up to its dependence on China.
Legislation such as the US Inflation Reduction Act and the EU’s Critical Raw Materials Act are just some examples of how governments are looking to strengthen their positions in the critical minerals sector.
When it comes to lithium, developing new sources of supply is essential if the energy transition is to take place — this is why lithium in Africa presents a unique opportunity.
Multiple countries in Africa produce lithium, and Zimbabwe is a top 10 global producer of lithium. The country accounted for about 3,400 metric tons (MT) of lithium supply in 2023, and total Zimbabwe lithium reserves stand at 310,000 MT, as per the US Geological Survey.
Many countries in Africa are looking to develop lithium resources, and some are even producing the metal.
Here the Investing News Network has listed some of the key mines and deposits being developed in Africa by publicly listed companies. The assets are listed in alphabetical order for each country.
Arcadia
Bikita
Kamativi
Sabi Star
Sandawana
Zulu
Karibib
Uis
Manono
Goulamina
Located in Southern Mali, the Goulamina project has a mine life of 21 years, according to a definitive feasibility study from December 2021. Average annual spodumene concentrate production is expected to be 506,000 MT in Stage 1, rising to 831,000 MT in Stage 2.
Bougouni
Ewoyaa
Chinese companies have moved faster than the western world to secure lithium supply in Africa. And it is not just lithium they are looking to lock down — they also have ownership and interests in properties that hold other key metals needed for electric vehicles, such as cobalt and copper.
China plays a key role in the lithium-ion battery supply chain, dominating the midstream when it comes to lithium. Despite this, in terms of production China is behind Australia, known for its hard-rock assets, and Chile, known for its brines. This is why Chinese companies have invested heavily in lithium sources in other regions, including South America and, of course, Africa.
“China holds the majority of the world’s refining capacity. However, their domestic mine supply cannot keep up,” states Claudia Cook, a lithium analyst at Benchmark Minerals. “What sets China apart is that it already has the supply chain to utilise African lithium resources, as well as the expertise and capital.”
African countries are well aware of the need for the critical raw materials they have, and are looking for ways to add more value to what they produce — meaning not just mining, but processing materials before export.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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