Africa dominates critical mineral extraction but lacks industrial processing

Africa holds a dominant position in the global extraction of critical minerals essential for the energy transition, yet it remains largely excluded from the industrial processing stage. Currently, the continent accounts for 76% of global cobalt extraction and 41% of bauxite. Projections for 2030 suggest Africa's share of lithium production could reach 60%, while graphite could reach 40%.

Despite this geological wealth, most raw or minimally processed minerals are exported to refineries and battery material factories located primarily in Asia. This creates a significant gap between upstream mining and downstream industrial value addition. The competition to secure these resources has intensified between major powers, including China and the United States, through long-term supply agreements and infrastructure financing.

Achieving local industrialization requires addressing several structural challenges, including the cost and availability of electricity, heavy transport infrastructure, technical expertise, stable regulatory frameworks, and access to long-term financing.